A common example of restricted cash includes cash set aside by the company for the specific purpose of:
A)Repaying debt in the future.
B)Purchasing equipment in the future.
C)Making investments in the future.
D)All of the other answers represent examples of restricted cash.

Question

Quizplus · Accepted Answer

All of the other answers represent examples of restricted cash. Restricted cash is cash that has limitations or restrictions on its use. It cannot be used for any other purpose except for the designated purpose or situation specified in the restriction. Common examples of restricted cash include cash set aside by the company for the specific purpose of repaying debt in the future, purchasing equipment in the future, making investments in the future, or other specific purposes.

A Common Example of Restricted Cash Includes Cash Set Aside