Sinking Fund Cash Would Be Classified on the Balance Sheet As?


Quick Answer

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.

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Full Answer

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.

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