Restricted cash is cash that is not available for use in the current year. Restricted cash is usually reported as noncurrent or current assets. Sometimes restriction on cash is based on a managerial decision that restricts cash for a special purpose. To explain: If restricted cash is included in the reconciliation of cash balance on the statement of cash flows or not.

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Chapter 7, Problem 7.4Q

To determine

Concept Introduction: Restricted cash is cash that is not available for use in the current year. Restricted cash is usually reported as noncurrent or current assets. Sometimes restriction on cash is based on a managerial decision that restricts cash for a special purpose.

To explain: If restricted cash is included in the reconciliation of cash balance on the statement of cash flows or not.

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