Restricted Cash Balances Explained | CFA® Level 1 Exam | Test Prep

Restricted Cash Balances

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Restricted cash balances are ________.

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At times, firms earmark cash deposits and balances for meeting longer term obligations like sinking funds or plant expansions. Such restricted cash balances are reported as non-current assets even though they are in a liquid form, since they are not available to satisfy current liabilities.