Which of the following would not be a contractual restriction to the cash available to pay current obligations?
A) Sinking fund
B) Certificate of Deposit
C) Postdated checks
D) Negotiable instruments

Question

Quizplus · Accepted Answer

Negotiable instruments, such as checks or promissory notes, are financial instruments that are transferable by endorsement or delivery. They do not represent a restriction on cash available to pay current obligations but rather are a means of transferring money or extending credit. Sinking funds, certificates of deposit, and postdated checks can all represent restrictions on the availability of cash for current obligations.

Which of the Following Would Not Be a Contractual Restriction