C & CE Flashcards
Rule to Remember in Cash
must be unrestricted
Measurement of Money in a Closed / Bankrupt Bank
NRV
Undelivered / Postdated / Stale Check drawn by others is part of cash. True or False?
False (must be drawn by entity)
- Since drawn by others → will go back to receivable
Compensating Balance (legally restricted, in connection with a short-term borrowing) is part of cash. True or False?
False (STI or LTI based on borrowing)
Cash Fund (in connection with a short-term borrowing) is part of cash. True or False?
True (different sa compensating balance)
Cash Fund (in connection with a short-term borrowing, for acquisition of NCA) is part of cash. True or False?
False
- Short-term Liability → Cash
- Long-term liability → LTI
- For NCA → Always LTI
IOU from employee is part of cash. True or False?
Postage stamps is part of cash. True or False?
Cryptocurrency is part of cash. True or False?
False (receivable)
False (supplies)
False (not readily available for cash)
Rule to Remember in Cash Equivalent
3-Month Rule (date of purchase)
Equity Investment is part of cash equivalent. True or False?
False
5 Composition of Cash Equivalent
- treasury bills
- time deposit
- commercial paper
- money market placement
- preference share (IF 3 month rule)
Petty Cash Fund
ERA REVERSE
Establish
Expense - memo entry only
Reimburse/Replenish
Adjust at Year-End
Reverse at Beginning of next year
Anong process lang di gumagalaw yung PCF account?
Replenishment
Dr. Expenses // Cr. Cash in Bank
Bank Reconciliation
BDO
Bank + DIT + OC = Adjusted Bank Balance
Outstanding Checks include certified checks. True or False?
False
Heading in Proof of Cash
Beginning | Increase in Cash | Decrease in Cash | Ending
