登录之后可查看解析

Answer (A) is correct . A compensating balance is a minimum amount that the bank requires the firm to keep in its demand account. Compensating balances are noninterest- bearing and are meant to compensate the bank for various services rendered, such as unlimited check writing. These funds are obviously unavailable for short-term investment and thus incur an opportunity cost.

Answer (B) is incorrect because In financial accounting, a valuation allowance is used to reflect losses on marketable securities.
Answer (C) is incorrect because Safety stock is held for such purposes.
Answer (D) is incorrect because Interest deducted in advance is discount interest.