Lesson 1 CCE Flashcards
Money and any negotiable instrument that is payable in money and acceptable by bank for deposits and immediate credit
Cash
Short term and highly liquid investments that are readily convertible into cash and so near their maturity that they represents insignificant risk of changes in value because of changes in interest rate
Cash equivalent
True or false; 3 months BSP T-BILL
True
True or false; 3 years BSP T-Bill purchased 3 months before date of maturity
True
true or false; 3 months time deposit
True
Cash is measured at
Fair amount
True or false; Cce should be shawn as the first line item under current Assets, but the details comprising the cca should be disclosed in the notes to income statement
False
What are the important areas:
Cash fund, petty cash fund, bank overdraft, compensating balance, post dated check delivered, stale check, cash shortage or overage
True or false; classification for cash fund as current or noncurrent asset should parallel the classification of related liability
True
It is a set aside for the payment of a bond payable shall be classified as current asset when the bond payable is already due within 1 year after the end of the reporting period
Sinking fund
True or false; cash funds set aside for the acquisition of a non-current asset should be classified as non-current regardless of the year of disbursement
True
Money set aside to pay small expenses which cannot be paid conveniently by means of check
Petty cash fund
What are the two methods of handling petty cash
Imprest fund system and fluctuating fund system
Usually followed in handling petty cash transaction
Imprest Fund system
Checks drawn to replenish the fund do not necessarily equal the petty cash disbursement
Fluctuating fund system
The journal entry for imprest fund system: check is drawn to establish the fund
Dr. petty cash, Cr. Cash in bank
Give the journal entry using fluctuating fund system; check is drawn to establish the fund
Dr. Petty cash , Cr. Cash in bank
Give the journal entry using the imprest fund system; payment of expenses out of the fund
Memo entry only
Give the journal entry using impressed fund system; replenishment of petty cash payment
Dr. Expenses, Cr. cash in bank
Give the journal entry using fluctuating font system payment of expenses out of the fund
Dr. Expenses, Cr. petty cash fund
Give the journal entry using the fluctuating fund system; replenishment of petty cash payment
Dr. Petty cash fund, Cr. cash in bank
Give the journal entry using the imprest font system; adjustment of the unreplenished expense to state the correct petty cash balance
Dr. Expenses, Cr. petty cash fund
Give the journal entry using fluctuating fund system: adjustment of the replenished expenses to state the correct petty cash balance
No adjustment
Give the journal entry using the imprest fund system; increase in the fund
Dr. Petty cash fund, Cr. cash in bank
Give journal entry using imprest fund system; decrease in the fund
Dr.Cash in bank, Cr. petty cash fund
Give the journal entry using fluctuating fund system increase in the fund
Petty cash fund cash in bank
Give the journal entry using punctuating fund system; decrease in the fund
Dr. Cash in bank, Cr. petty cash fund
When the cash in bank account has a credit balance it is what
Overdraft
is classified as a current liability and should not be offset against another bank account with debt balance. Generally, overdraft are not permitted in the philippines
Bank overdraft
True or false; bank overdraft is classified as a current liability and should be offset against another bank account with debt balance. Generally, overdraft are not permitted in the philippines
False
True or false; bank overdraft is classified as a current liability and should not be offset against another bank with debt balance. Generally, overdrafts are permitted in the philippines.
False
The bank overdraft is classified as a current liability and should not be offset against another bank account with that balance generally overdrafts are not permitted in the philippines.
True
An overdraft can also be offset against the other bank account if the amount is
Non-material
it Generally takes the form of minimum checking or demand deposit account balance that must be maintained and connection with a borrowing agreement with a bank
Compensating balance
Compensating balance is not legally restricted because of informal compensating balance agreement
Cash (current asset)
Compensating balance is legally restricted for a short term loan because of formal compensating balance agreement
Cash held as a compensating balance (current asset)
Compensating balance legally restricted for long term loan
Non-current investment (non-current asset)
One that is merely drawn and recorded but not given to the payee before the end of reporting period
Undelivered or unreleased check
Is a check not in cash by the payee within a relatively long period
Stale check
Delivered is a check drawn, recorded and already given to the pay but it bears a date subsequently to the end of reporting period
Post dated check
True or false; adjustment entries is required to restore the cash balance and set up the liability
True
True or false; if the amount of Stale check is material it is accounted for as miscellaneous
False
If the Amount of a stale check is _______ , it is accounted for as miscellaneous Income
Immaterial
Give journal entry using cash shortage amount per cash count differs from balance per book
Dr. cash short or over, Cr. cash
Give journal entry using cash overage; amount per cash count differs from balance per book
Dr. Cash, Cr, cash short or over
Give journal entry using cash shortage; responsibility of the cashier or cash custodian
Dr. receivable from cashier, Cr. Cash Short/Loss
Give journal entry using cash shortage; failure to disclose the cause of the difference
Dr. lost from cash shortage, Cr. cash short or over
Give journal entry using cash overage: responsibility of the cashier or cash custodian
Dr. cash short or over, Cr. payables to cashier
Give journal entry using cash overage; failure to the cost of the difference
Dr. cash short or over, Cr. miscellaneous income
