Management Notes

Reference Notes for Management

Evaluating Compensating Balances | Financial Statement Analysis

Evaluating Compensating Balances

Evaluating Compensating Balances |  Financial Statement Analysis | Discussion Questions | Westcliff University 4–1. Companies typically report compensating balances that are required under a loan agreement as unrestricted cash classified within current assets. a. For purposes of financial statement analysis, is this a useful classification? Explain. b. Describe how you would evaluate compensating balances. Yes, … Read more