Which of the Following Statements Relating to Restricted Cash Is

question 101

Multiple Choice

Which of the following statements relating to restricted cash is not correct?

• A)Restricted cash is not available for general use but rather restricted for a specific purpose.
• B)Restricted cash must be reported separately on the balance sheet.
• C)By including restricted cash as part of the amount reported as cash and cash equivalents,the company more clearly conveys to financial statement users the actual amount of cash available to pay liabilities.
• D)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.

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Definitions:

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