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3 Cards in this Set
- Front
- Back
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Definition and Classifications |
Cash equivalents: short-term, highly liquid investments that are both readily convertible to cash and so near their maturity when acquired by the entity (90 days or less from date of purchase) that they present insignificant risk of changes in value Cash is classified as unrestricted or restricted |
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Bank rec |
Deposits in transit = Add to bank Outstanding checks = Deduct from bank Service charges = Deduct from bank Bank collections = Add to books Errors = made by either bank or despositors Non-sufficient funds (NSF) = Deduct from books Interest income = Add to books Steps in simple bank rec: 1. Book balance is adjusted to reflect any corrections reported by bank 2. After the above adjustments are made: Adjusted book balance = True balance 3. The bank balance per the bank statement is reconciled to the "true balance" |
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Reconciliation of Cash Receipts and Disbursements |
Four-column rec or proof of cash 1. Balance at end of prior month 2. Receipts 3. Payments 4. Balance at end of current month |
