7.5 Reporting Cash

Question 1

Companies report cash in…

Answer 1

1. Balance Sheet
2. Cash Flow Statement

Question 2

Balance Sheet vs Cash Flow Statement

Answer 2

• The balance sheet =

reports the amount of cash available at a point in time (the date of the balance sheet).

• The cash flow statement =

shows the sources and uses of cash during a period of time.

Question 3

Cash vs Restricted Cash

Answer 3

• Cash

Cash on Hand, Cash in Banks, Petty Cash

Can be:

Current/ Non-Current Asset

• Restricted Cash

Restricted for special purpose

Can be:

Current/ Non-Current Asset

Question 4

Bank Overdraft

Answer 4

Withdrawals or payments are more than the amount in the bank account

This becomes a short-term loan from the bank

Cash Account = Credit Balance and reported as Current Liability

= Bank Indebtedness