Companies typically report compensating balances that are required under a loan agreement as unrestricted cash classified within
Question:
a. For purposes of financial statement analysis, is this a useful classification? Explain.
b. Describe how you would evaluate compensating balances.
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a No When analyzing cash the most liquid of current assets the analyst is interested in the availabi...View the full answer
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Related Book For
Financial Statement Analysis
ISBN: 978-0078110962
11th edition
Authors: K. R. Subramanyam, John Wild
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