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52 Cards in this Set
- Front
- Back
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Includes undeposited cash collections and other cash items waiting for deposit |
Cash On Hand |
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Includes demand deposit or checking account and saving deposit which are unrestricted as to withdrawal |
Cash in Bank |
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set aside for current purposes |
Cash fund |
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As short term and highly liquid investments that are readily convertible into cash and so near their maturity that they present insignifican risk of changes in value bcoz of interest rates |
Cash Equivalents |
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Standard medium of exchange in business |
Money |
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cash simply means |
Money |
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currency and coins which are in circulation and legal tender |
Money |
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Includes money and any negotiable instrument that is payable in money and acceptable by the bank for deposit and immediate credit |
Cash |
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According to be reported as cash, an item must be |
Restricted |
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Cannot quantify as cash equivalents because shares do not have maturity date. |
Equity Securities |
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Examples of Cash equivalents |
Treasury bill Time deposit Money market |
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If the term is three months or less |
Cash equivalent |
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If the term is more than three months but with in one year |
Short term financial asset/temporary investments (current asset) |
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the term is more than 1 year |
non current investments/long term investments |
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Measurement of cash |
Face value |
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Cash Items |
Cash on Hand Cash in Bank Cash Funds |
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Calls for a bank to pay the amount shown from the maker's account |
Ordinary check |
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It is an instrument of payment generally considered the same as cash. Drawn on the bank's own funds and signed by an officer of the bank |
Cashier's check |
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A bill of exchange drawn by a bank on another bank |
Bank draft |
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Check for which the issuing bank guarantees payment by certifying that there are sufficient funds available in the account from which the check is drawn to cover it |
Certified check |
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Issued by an express company or bank bearing the signature of the purchaser and to be cashed when countersigned in the presence of tbe payee |
Traveler's check |
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Order granted upon payment of a sum and a small commission, by one post office, bank or telegraph company and payable at another |
Money orders |
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Cash In Bank Examples |
Savings Deposit Checking/Demand deposit Current account |
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translated to ph peso using current exchange rate |
Foreign currency |
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Cash in bank account having a credit balance |
Bank overdraft |
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Cash from closed banks |
Receivable |
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Minimum checking or demand deposit account balances that must be maintained in connection to borrowing agreement with the bank |
Compensating Balance |
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checks are drawn, recorded and already given to the payees but bear a date subsequent to the balance sheet date |
Postdated checks |
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Post dated checks issued by company |
Cash in Bank Accounts Payable |
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Postdated checks received from customers |
(Treated as receivable) A/R Cash in bank |
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Checks are not encashed by the payee within a relatively long period if time |
Stale Checks |
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Stale Check --- Immaterial |
Cash in Bank Miscellaneous income |
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Stale Check --- Material Amount |
Cash in Bank Accounts receivable |
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NSF, PAUD, DAIF Checka |
Receivables |
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Funds segregated by the management to finance specific operating activities of the business enterprise or for payment of obligation |
Cash funds |
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Finance currenr operations Payment for current obligation Part of cash |
Working funds |
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Working Funds (7) |
Petty Change Payroll Dividends Tax Interest Travel |
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Cash Fun for Non Current Purpose (5) |
Preference share Contingent fund Insurance fund Sinking fund Fund for aquisition of property |
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1Tim 6:10 |
For the love of money is a root of all kinds of evil, where some reaching after have been led astray from the faith, and have pierced themselves through many sorrows. |
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it consist of misappropriating a collection from one customer andconcealing this defalcation by applying a subsequent collection made from another customer. Can be detected by receivable confirmation |
Lapping |
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An entity must identify specifically the persons who are authorized to handle cash receipts. |
Cash Controls |
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Made possible when a company maintains current accounts in different banks. It occurs when a check is drawn against a first bank and depositing the same check in a second bank to cover the shortage in the latter bank.Can be discovered by simultaneous preparation of bank reconciliation statements |
Kiting |
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when entities open their books even beyond the end of the accounting period for the purpose of showing a better picture of the financial highlights and profit activities of the business |
Window Dressing |
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Accounting for Cash Shortage (Cash < Balance per book = cash shortage) |
Cash short or over Cash |
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Accounting for Cash ShortageIf the cashier or cash custodian is held responsible for the cash shortage. |
Due from Cashier Cash short or over |
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Accounting for Cash ShortageIf reasonable efforts fail to disclose the cause of the shortage: |
Loss from Cash Shortage Cash short or over |
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Accounting for Cash OverageCash > balance per book. |
Cash Cash short or over |
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Accounting for Cash Overage Cash overage is treated as miscellaneous income if there is no claim on the same: |
Cash short or over Miscellaneous income |
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Accounting for Cash OverageIf properly found to be the money of the cashier: |
Cash short or over Payable to cashier |
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Is a system of control of cash which requires that all cash receipts should be deposited intact and all cashdisbursements should be made by means of check. |
Imprest system |
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Two methods of handling petty cash fund: |
Imprest fund system Fluctuating fund system |
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At the end of the accounting period, no adjustment is necessary because the petty cash expenses are recorded outright |
Fluctuating fund system |
