In order to classify cash as a current asset,it must be free from any restrictions that would prevent its deposit or use to pay creditors classified as long-term.

Question

Quizplus · Accepted Answer

Cash can still be classified as a current asset even if there are restrictions on its use, as long as it is expected to be used or available to meet current obligations. Restrictions do not necessarily preclude it from being a current asset.

In Order to Classify Cash as a Current Asset,it Must