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

Question

Quizplus · Accepted Answer

Cash in an escrow account is typically restricted for a specific purpose, such as a guarantee or transaction, and should be separately reported as restricted cash in the balance sheet or footnotes to the financial statement. The other options do not have any known restrictions and would not be separately reported as restricted cash.

Which of the Following Would Be Separately Reported as Restricted