Evaluate the following statements: Statement 1. Compensating balance requirements as a result of long-term financing arrangements is reported under the cash and cash equivalents section of the balance sheet. Statement 2: An overdraft that resulted from an over withdrawal beyond the overdraft allowance may be reported as either current or noncurrent inability Statement 3: Certificates of deposit and money market savings certificates are examples of time deposits which may other be shown in the 'cash and cash equivalents' line item or 'investment' item. a. All statements are correct b. One statement is correct c. Two statements are correct d. All statements are incorrect

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