Unrestricted Cash
 |
Definition of 'Unrestricted Cash'Monetary reserves that are not tied to a particular use. Unrestricted cash represents instant reserves, as it can be used for any purpose and is extremely liquid. Often, in order to satisfy debt covenants, firms will have to maintain a certain level of cash on their balance sheets - the amount that exceeds the requirements is referred to as unrestricted cash.An organization's liquid funds include cash, unrestricted cash, cash equivalents, unrestricted short-term (ST) investments, plus net short-term borrowing capacity. |
 |
Investopedia explains 'Unrestricted Cash'Cash and cash equivalents represent the money that an organization can spend now, as they are assets readily available for use. In order to spend more than that, a company will have to take on a higher level of liabilities, such as through loans or accounts receivable. For some organizations with a varying pattern of cash flow, such as a non-profits, unrestricted cash can keep operations active even when funding sources dry up. |
Related Definitions
Articles Of Interest
-
12 Things You Need To Know About Financial Statements
Discover how to keep score of companies to increase your chances of choosing a winner. -
The Essentials Of Corporate Cash Flow
Tune out the accounting noise and see whether a company is generating the stuff it needs to sustain itself. -
Operating Cash Flow: Better Than Net Income?
Differences between accrual accounting and cash flows show why net income is easier to manipulate. -
Cash: Can A Company Have Too Much?
Cash is something companies love to have. But if they are not using it there could be problems. -
What Is A Cash Flow Statement?
Learn how the CFS relates to the balance sheet and income statement as a part of a company's financial reports. -
Spotting Cash Cows
We show you why some of these companies stand apart from the herd. -
Depreciation: Straight-Line Vs. Double-Declining Methods
Appreciate the different methods used to describe how book value is "used up". -
Financial Statement: Extraordinary Vs. Nonrecurring Items
When it comes to analyzing a company, successful analysts spend considerable time differentiating between accounting items that are likely to recur going forward from those that most likely will ... -
Get A Career In Showbiz Accounting
An accounting career doesn't have to be boring. If you love numbers, but want excitement as well, consider the field of showbiz accounting. -
What Management Accountants Do
If you like keeping track of a company's income and expenses but also want to hold a position with significant responsibility and authority, management accounting could be the job for you.
Free Annual Reports
