Restricted cash is reported:
A)separately as an asset on the balance sheet.
B)together with cash and cash equivalents on the balance sheet.
C)separately under stockholders' equity on the balance sheet.
D)together with cash and cash equivalents on the income statement.

Question

Quizplus · Accepted Answer

Companies are sometimes legally or contractually required to set aside cash for a specific purpose and are not allowed to use it for day-to-day operations.This restricted cash must be reported separately on the balance sheet.

Restricted Cash Is Reported