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    Financial Accounting Study Set 5
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    Exam 8: Cash and Receivables
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    A Compensating Balance Restricts Cash; in Effect,it Increases the Interest
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A Compensating Balance Restricts Cash; in Effect,it Increases the Interest

Question 170

Question 170

True/False

A compensating balance restricts cash; in effect,it increases the interest on the loan and reduces a company's liquidity.

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