Jim's Company has the following items: cash in a checking account, $3000; cash in a savings account, $8000; high-grade government securities due in one month (purchased last month), $3596; accounts receivable, $3500; cash pledged as collateral for a loan, $11,700. How much should appear as Restricted Cash on the balance sheet?
A)$11,000
B)$11,700
C)$14,500
D)$3596

Question

Quizplus · Accepted Answer

Restricted cash refers to cash that is reserved for a specific purpose and is not available for general business use. In this case, the cash pledged as collateral for a loan, $11,700, is considered restricted cash.

Jim's Company Has the Following Items: Cash in a Checking