Cash and Cash Equivalent

Postdated check delivered

A check drawn, recorded and already given to the payee but it bears a date subsequent to the end of reporting period.

Stale check

A check not encashed by the payee within a relatively long period of time.

Imprest system

A system of control of cash which requires that all cash receipts should be deposited intact and all cash disbursement should be made by means of check.

Postdated checks received

Cannot be considered as cash yet because these checks are unacceptable by the bank for deposit and immediate credit or out right encampment.

Equity securities

Cannot qualify as cash equivalents because shares do not have a maturity date.

Fluctuating fund system

Checks drawn to replenish the fund do not necessarily equal the petty cash disbursements.

Petty cash

Money set aside to pay small expenses which cannot be paid conveniently by means of check.

Undelivered or unreleased check

One that is merely drawn and recorded but not given to the payee before the end of the reporting period.

Cash short or over account

Only a temporary or suspense account.

Compensating balance

Takes the form of minimum checking or demand deposit account balance that must be maintained in connection with the borrowing arrangement with a bank.

Date of purchase

What is important is the _______ which should be three months or less before maturity.

Preference shares

With specified with redemption date and acquired three months before redemption date can qualify as cash equivalents.