Cookie Monster, Inc is a corporation that has been approved for a Line of Credit by Bank of France, but Cookie Monster, Inc has not tapped or used any of the Line of Credit amount (i.e., the balance of the Line of Credit is zero). Will the Line of Credit show up on the Balance Sheet of Cookie Monster, Inc.?

1. No, the Balance Sheet will not show the Line of Credit because the balance is zero.

2. Yes, the Balance Sheet will show the Line of Credit because it was approved by the Bank

   of France.

3. Yes, the Balance Sheet will show the Line of Credit because Cookie Monster, Inc. has the

   ability to use the Line of Credit.

4. None of these is correct.

Answer: ___________