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Question 2 During a reorganization, cash reserves tend to grow. How should interest earned on these reserves be reported on the financial statements? O As an unearned revenue until the reorganization is complete. O As a credit directly to retained earnings. O On the balance sheet as a long-term liability. On the income statement, but not classified as a reorganization item. O On the income statement as a reorganization item.

Question 2 During a reorganization, cash reserves tend to grow. How should interest earned on these reserves be reported on the financial statements? O As an unearned revenue until the reorganization is complete. O As a credit directly to retained earnings. O On the balance sheet as a long-term liability. On the income statement, but not classified as a reorganization item. O On the income statement as a reorganization item.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Question 2 During a reorganization, cash reserves tend to grow. How should interest earned on these reserves be reported on the financial statements? O As an unearned revenue until the reorganization is complete. O As a credit directly to retained earnings. O On the balance sheet as a long-term liability. On the income statement, but not classified as a reorganization item. On the income statement as a reorganization item.
Transcribed Image Text:Question 2 During a reorganization, cash reserves tend to grow. How should interest earned on these reserves be reported on the financial statements? O As an unearned revenue until the reorganization is complete. O As a credit directly to retained earnings. O On the balance sheet as a long-term liability. On the income statement, but not classified as a reorganization item. On the income statement as a reorganization item.
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