Which of the following is not true with respect to the reporting of cash?
A)Cash equivalents are normally combined with cash and reported as a current asset.
B)Compensating balances are minimum cash balances required by the bank.
C)Restricted cash can be either a current or a non-current asset, depending on when it is expected to be used.
D)Cash overdrafts are reported as contra-assets.

Question

Quizplus · Accepted Answer

Cash overdrafts are not reported as a contra-asset, but rather as a current liability on the balance sheet.

Which of the Following Is Not True with Respect to the Reporting