cash and cash equivalents Flashcards
money that is readily available for immediate use
cash
when is cash recorded
when actually received or paid by the entity
what is the valuation of cash
generally at face amount
what is the valuation for foreign currencies
at exchange rate on the date of the balance sheet
what are the types of checks received from customers
personal, certified, traveler’s and manager’s
what items are not included in cash
post-dated checks received from customers, stale checks, bank overdrafts, deposit in escrow, unused credit line, deposits in bankrupt banks, restricted compensating balances, non-current, nonoperating funds.
what are included in cash on hand
coins and currencies, money orders, undeposited collections
what are included in current cash funds
petty cash funds, change funds, payroll funds, dividend funds , revolving funds, interest funds, travel funds
what are included in cash in bank?
savings, demand/checking accounts, collections made by the bank, checks received by the customer
what are cash equivalents
short term, highly liquid investments acquired 3 months before maturity
what are included in cash equivalents
treasury bills, bonds, notes, time deposits, money market, commercial papers
what are not included in cash equivalents
equity shares, treasury shares, those that do not have maturity dates or are not debt instruments
when is the petty cash fund account debited/credited
when there is set-up, adjustment at year end, and increase or decrease of funds
what is the accounting for undelivered checks drawn and post-dated checks drawn?
included in cash
what is the accounting for bank overdrafts
they are current liabilities, unless offset is allowed
