Lawrence Company has cash in bank of $22,000, restricted cash in a separate account of $4,000, and a bank overdraft in an account at another bank of $2,000. Lawrence should report cash of

Question

Quizplus · Accepted Answer

Lawrence should report cash of $22,000, as this is the amount of cash in the bank that is available for general use. The restricted cash in a separate account is not available for general use, and the bank overdraft should be reported as a liability rather than as part of cash.

Lawrence Company Has Cash in Bank of $22,000, Restricted Cash