What is an Unrestricted Fund Balance? Explanation and How Does Its Work?
A company with significant restrictions may struggle to meet payroll, supplier payments, or tax obligations without external financing, increasing borrowing costs and reducing profitability. Loan covenants may require restricted cash accounts as collateral or for debt repayment. A real estate developer with a construction loan might need to place funds in escrow, accessible only for … Continue reading What is an Unrestricted Fund Balance? Explanation and How Does Its Work?