Do companies always classify cash as a current asset on the balance$$sheet$?$ Explain.

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Part $1$

A$.$

Cash is classified as current unless it is a cash equivalents with original maturities of three months or less. Accounting standards require separate disclosure for cash and cash equivalents that are restricted from withdrawal or use in operations.

B$.$

Cash is classified as current unless it is a treasury bill. Treasury bill is classified as$$long$-$term due to the limitations on use. When cash is legally restricted from use in the current operating$$cycle$,$ it should be reclassified out of the regular cash line item on the balance sheet and disclosed in the footnotes.

C$.$

Cash is always classified as current$$asset$,$ without exception.

D$.$

Cash is classified as current unless it is restricted from use in the current operating cycle. Restrictions on$$withdrawal$,$ and therefore limitations on$$use$,$ in the current operating cycle include foreign bank$$accounts$,$ escrow$$accounts$,$ collateral for certain$$obligations$,$ and$$long$-$term debt sinking funds. When cash is legally restricted from use in the current operating$$cycle$,$ it should be reclassified out of the regular cash line item on the balance sheet and disclosed in the footnotes.