Restricted Cash

Money set aside to pay a bill you know you will be receiving in the future.

Susan’s company bought a $500,000 machine. She has set aside a $500,000 bank CD so she will be able to pay the bill when it is received. The bank CD (certificate of deposit) would be considered restricted cash.

https://accounting.uworld.com/cpa-review/lc/accounting-dictionary/term/restricted-cash/