Final answer:
To determine how much cash a business has available, review the assets section of the balance sheet, which includes physical cash, bank account balances, and cash equivalents.
Step-by-step explanation:
To determine how much cash a business has available, the section of a balance sheet you should review is the assets section. Cash is listed under current assets, which represents the most liquid assets the business has on hand that can be quickly turned into cash or that are already in cash form. This includes not only physical cash held by the business but also cash in bank accounts and cash equivalents.
Cash on the balance sheet may not actually be in the physical possession of the bank because it can include money held at the Federal Reserve bank (reserves), or it may be spread across various accounts and financial instruments that are readily accessible.
When buying loans in the secondary market, an investor may pay more for a loan if the borrower is financially stable and consistent with payments (e.g., a firm declaring high profits). Conversely, an investor may pay less if the borrower has been late on loan payments or if market interest rates have increased since the loan was made, reducing its current value.