3. Cash that is restricted in some way and not available for current use usually is...
3. Cash that is restricted in some way and not available for current use usually is reported as
a. Cash equivalent
b. Investment and funds
c. Other assets
d. Both b and c.
Homework Answers
Answer:
Option C : Other Assets
Explanation:
Cash that is restricted in some way and not available for current use is called Restricted Cash.
It cannot be reported as Cash and Cash Equivalents because of the reason that it is held for some specific purpose, and not available for the company for immediate or general business use.
It cannot be called as an Investment. So, restricted cash is reported on balance sheet as " Other Assets" or " Other Restricted Cash".
So the correct answer is option C : Other Assets.
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