reston corp. borrowed $20,000 from first national bank on a 6-month note at 8% interest. reston has an informal arrangement with no contractual agreement with the bank to maintain a compensating balance of $2,000 until the loan is repaid. reston should report the $2,000 as

Reston has an informal arrangement with no contractual agreement with the bank to maintain a compensating balance of $2,000 until the loan is repaid. Reston should report the $2,000 as cash and cash equivalents.

Cash and its counterparts are what?

The line item on the balance sheet that shows the value of a company's assets that are cash or can be instantly turned into cash is referred to as "cash and cash equivalents. Bank accounts and marketable securities like commercial paper and short-term government bonds are examples of cash equivalents.

What is a cash equivalent example?

Cash equivalents can take several forms, for instance: US Treasury notes. US Treasury bills. Business paper.

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