Cash

Question 1

Cash

Answer 1

coin, currency, petty cash, cash in bank, negotiable instruments (checks), money orders

Question 2

Cash equivalent

Answer 2

short term, readily convertible toknown amount of cash, bears no risk from int rate (maturity 90 days or less)

Question 3

Restricted Cash

Answer 3

cash accounts with legal restrictions (ex: certificate of deposit, compensating balances, bond sinking fund, escrow accounts)

Question 4

Internal controls of cash

Answer 4

separation of duties: custody, recording and reconciliation

Question 5

Differences between GAAP and IFRS on cash

Answer 5

US GAAP: overdrafts considered liab

IFRS: overdraft can be netted against other cash