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Cash and Cash Equivalents Flashcards

1
Q

Includes money and any other negotiable instrument that is payable in money and acceptable by the bank for deposit or immediate credit

A

CASH

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2
Q

What is the Recognition of CASH?

A

UNRESTRICTED USE

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3
Q

Measurement of cash in local currency?

A

at face value

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4
Q

Measurement of cash in foreign currency?

A

at face value but translated to Php using closing rate at year end

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5
Q

Measurement of cash in closed banks or banks in bankruptcy?

A

estimated realizable value

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6
Q

Composition of Cash?

A

Cash on Hand
Cash in Bank
Cash Fund

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7
Q

Items of Cash on Hand?

A

Coins and Currencies
Checks
Other Instruments

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8
Q

Items of Checks?

A

Normal customer’s checks
Cashiers’, Managers’ & Travelers’ check
Undelivered & Post-dated checks
Stale Checks

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9
Q

Items of Cash in Bank?

A

Demand deposit
Savings deposit
Escrow deposit
Time deposit
Compensating balance
Bank Overdraft

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10
Q

What is included in computing cash in the item of cash in bank?

A

Demand deposit (non-interest bearing)
Savings deposit (interest bearing)
Compensating balance (if unrestricted use*silent)
Bank overdraft (if silent-no, 2 or more accounts in the same bank-yes, immaterial)

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11
Q

What is the classification of Escrow deposit and Time deposit?

A

Long-term investment
Cash Equivalent

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12
Q

Items of Cash Fund?

A

Asset Acquisition
Use in Operations
Settlement of Liabilities

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13
Q

What is included in computing cash in the item of cash fund?

A

Current Asset, Current liability and list of funds for use in operations

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14
Q

Which is not included as fund for use in operations?
a. Change fund
b. Payroll fund
c. revolving fund
d. pension fund
e. petty cash fund
f. sinking fund
g. travel fund

A

D & F

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15
Q

Money set aside to defray relatively small amount of cash disbursements.

A

Petty Cash Fund

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16
Q

Two Accounting methods in computing Petty Cash Fund?

A

Imprest fund system and Fluctuating fund system

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17
Q

Journal Entry (PCF) Imprest System: Establishment

A

Petty Cash Fund
Cash in Bank

18
Q

Journal Entry (PCF) Imprest System: Payment of Expense

A

Memo entry only

19
Q

Journal Entry (PCF) Imprest System: Replenishment

A

Expenses
Cash

21
Q

Journal Entry (PCF) Imprest System: Adjusting Entry for Unreplenished fund

A

Expenses
Expense

21
Q

Journal Entry (PCF) Imprest System: Increase in the fund

A

Petty cash fund
Cash in bank

22
Q

Journal Entry (PCF) Imprest System: Decrease in the fund

A

Cash in Bank
Petty cash Fund

23
Q

Journal Entry (PCF) Fluctuating System: Establishment

A

Petty Cash fund
Cash in Bank

24
Q

Journal Entry (PCF) Fluctuating System: Payment of Expense

A

Expenses
Petty cash fund

25
Journal Entry (PCF) Fluctuating System: Replenishment
Petty Cash Fund Cash in Bank
26
Journal Entry (PCF) Fluctuating System: Adjusting Entry for Unreplenished fund
No Entry
27
Journal Entry (PCF) Fluctuating System: Increase in the fund
Petty Cash Fund Cash in Bank
28
Journal Entry (PCF) Fluctuating System: Decreasing in the fund
Cash in Bank Petty Cash fund
29
Consist of misappropriating a collection from one customer and concealing this defalcation when collection is made from another customer.
Lapping
29
is a transfer of cash from one bank yo another bank that is usually employed at the end of the month.
Kiting
30
is a practice of opening the books of accounts beyond the close of the accounting period for the purpose of showing a better financial position and performance.
Window Dressing
31
Journal Entry (Cash Shortage)- Upon discovery
Cash short/over Cash on Hand
32
Journal Entry (Cash Shortage)-Upon Investigation- cashier is accountable
Due from cashier Cash Short/over
33
Journal Entry (Cash Shortage)-Upon Investigation- cannot trace anymore
Loss from Shortage Cash Short/over
34
Journal Entry (Cash Overage)- Upon discovery
Cash on hand Cash short/over
35
Journal Entry (Cash Overage)-Upon Investigation- cashier is accountable
cash short/over Due to Cashier
36
Journal Entry (Cash Overage)-Upon Investigation- cannot trace anymore
cash short/over Oher income
37
Short-term and highly liquid investments that are readily convertible into cash and so near their maturity that they present insignificant risk of changes in value because changes in interest rates
Cash Equivalents
38
Recognition of Cash Equivalents
Debt instrument acquired within 3 months or less before their maturity date
39
Composition of Cash Equivalents
Time Deposit Money Market Instruments Commercial Paper Treasury Bills

Financial Accounting & Reporting (6 decks)

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