Multiple Choice
Which statement regarding negative cash balances is true?
A) The amount is offset against other current assets because users need to know net current assets.
B) The amount is shown as a current liability because a company cannot have a cash balance below zero.
C) The company must obtain a loan to bring the cash balance to zero before financial statements are prepared.
D) The negative cash balance is included as a current asset and discussed in a footnote to the financial statements.
Correct Answer:
Verified
Correct Answer:
Verified
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