Restricted Cash

Definition of Restricted Cash

Restricted cash, in contrast to cash freely available for a company to spend or invest, refers to money that is held for a specific purpose and therefore not available to the company for immediate or general business use. Restricted cash appears as a separate item from the cash and equivalents listing on a company's balance sheet or other financial statement, and the reason for the cash being restricted is usually disclosed in the accompanying notes to financial statements. Cash is restricted for a number of possible reasons, such as equipment purchases, other capital investments or loan repayment.

Restricted Cash Details