Even when such funds contain only cash, bond sinking funds are listed immediately after the 'current assets' on a balance sheet. The asset is part of the 'long-term asset' section and typically found under the "Investments" heading, according to the financial experts at AccountingCoach.com.
A sinking bond fund containing cash is not listed as a current asset because the fund is used to retire bonds - long-term liabilities. The cash in the fund is therefore a non-current asset, as it generally won't convert to unrestricted cash within one year of the balance sheet date. As a result, the fund's cash cannot be used to pay current liabilities, according to AccountingCoach.com.