Which of the Following Would Be Separately Reported as Restricted

question 41

Multiple Choice

Which of the following would be separately reported as restricted cash in the balance sheet or
Footnotes to the financial statement?

• A)$8,000 in the savings account at First Bank
• B)$200 in a petty cash drawer
• C)$10,000 cash in an escrow account at Guarantee Bank
• D)$4,000 in a checking account at Second Rate Bank

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Definitions:

Petty Cash Fund

A minor sum of money maintained in reserve to cover minor, immediate costs.

Cash Over and Short

An account that records discrepancies between actual cash received and the expected amount, reflecting errors or theft.

Petty Cash Fund

A small amount of cash kept on hand for making immediate payments for miscellaneous, small expenses.

Expense Accounts

Categories within financial accounting where expenses are recorded and tracked.