Which of the following is the correct accounting under GAAP for cash?
A) Cash on hand is not reported on the statement of financial position as Cash.
B) Restricted cash funds cannot be reported as a current asset.
C) Restricted cash funds may be reported as a current or non-current asset depending on the circumstances.
D) Cash cannot be combined with cash equivalents.

Question

Quizplus · Accepted Answer

Under GAAP, restricted cash funds may be reported as a current or non-current asset depending on the circumstances. This means that if the restriction applies for more than one year, it would be reported as a non-current asset, and if the restriction applies for less than one year, it would be reported as a current asset. Option A is incorrect as cash on hand is reported on the statement of financial position as Cash. Option B is incorrect as restricted cash funds can be reported as a current or non-current asset. Option D is incorrect as cash can be combined with cash equivalents.

Which of the Following Is the Correct Accounting Under GAAP