Is Restricted Cash a Current Asset?

Written by True Tamplin, BSc, CEPF®

Updated on January 02, 2023

Restricted cash may or may not be a current asset depending on how long it will be restricted for. Current assets are any assets that will provide an economic benefit for or within one year. Restricted cash is any cash that is set aside by a company to be used for some purpose at a later date. If the cash will be spent within one year, it is a current asset. If the cash will be unavailable for longer than one year, it is a non-current asset.

Is Restricted Cash a Current Asset FAQs

Is restricted cash a current asset?

Restricted cash may or may not be a current asset depending on how long it will be restricted for.

What is a current asset?

Current assets are any assets that will provide an economic benefit for or within one year.

What is restricted cash?

Restricted cash is any cash that is set aside by a company to be used for some purpose at a later date.

When would restricted cash be considered a current asset?

If the restricted cash will be spent within one year, it is a current asset.

About the Author

True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website, view his author profile on Amazon, or check out his speaker profile on the CFA Institute website.