Cash Flashcards
Cash equivalents include
U.S. Treasury obligations (bills, notes, and bonds), commercial paper (very short-term corporate notes), and money market funds.
US GAAP and IFRS differences
The main difference between U.S. GAAP and IFRS is that bank overdrafts can be subtracted from cash, rather than classified as liabilities.
Bank to book
The starting point is the balance per bank. All adjustments are made to this balance to arrive at the balance per book.
Book to bank
The starting point is the balance per book. All adjustments are made to this balance to arrive at the balance per bank.
Bank and book to true balance
In this format, the bank balance and the book balance are separately reconciled to the true cash balance, which is reported in the balance sheet. The adjustments to the two starting points (bank balance and book balance) are those changes in cash that have not been recorded in the bank or the books at the end of the period.
