Misconception · MIS:restricted-cash-is-excluded-from-cash-flow-reconciliation

Mistaken idea “Restricted cash is excluded from the cash-flow reconciliation”

Mistaken reasoning: This mistake omits generally described restricted cash because it is presented outside the balance sheet cash line.

Updated Aug 21, 2026 Review due Nov 8, 2026

Why this is mistaken

Restriction affects availability and balance-sheet presentation. The combined cash-flow reconciliation still includes applicable amounts generally described as restricted cash and explains where they appear.

Where to watch

When this mistake may appear

  • The amount cannot be used for general operations.
Check your work

Your work may contain this mistake if:

  • Leaves restricted-cash locations outside the beginning or ending statement total.