CASH & CASH EQUIVALENTS
excluded; receivables
Cash deposits with banks that have been restricted because of an unforeseen circumstance are ______ from "Cash". These deposits must be classified as _____ under current assets or non-current assets, depending on the expected timing of settlement.
Working funds
Cash funds segregated for current use in the ordinary conduct of business. This can be: Petty cash fund, Change fund, Payroll fund, Dividend fund, Tax fund, Interest fund.
face value; fair value; exchange rate
Cash is generally measured at _____, which is its _____. Demand deposits denominated in foreign currency are measured using the ______ in effect at the end of the reporting period.
Cash set aside for long-term specific purpose or for acquisition of a non-current asset
Should be reported as non-current financial asset.
Postage stamps and expense advances
Should be reported as office supplies or prepaid expense.
Customers' post-dated checks (No Sufficient Fund checks and IOUs)
Should be reverted to receivables.
Foreign Currency (Cash in foreign currency and deposits in foreign banks)
Should be translated to Philippine peso using the exchange rate at the end of the reporting period. However, if cash in foreign banks that are restricted as to use or withdrawal should be reported separately, preferably, as non-current assets.
miscellaneous expense; miscellaneous revenue
A debit balance in Cash short or Over account at the end of the period should be reported as a _______, while a credit balance is reported as a _______.
Cash in Bank; Miscellaneous Income
Cash items representing cash overage, should be taken out of the petty cash fund and should be deposited to the general cash account of the company to maintain the petty cash fund account at its Imprest balance. The deposit of the cash overage is recorded by a debit to ______ and a credit to ______.
debited; overages
Cash short or over is a nominal account that is ______ for shortages and credited for _____ in the petty cash fund.
Undelivered or unreleased checks
Company's checks drawn and recorded as disbursed but are not actually issued or delivered to the payees as of the reporting date. Should be reverted back to Cash and Accounts payable. Technically, checks drawn by a company should not be deducted from the company's cash balance until they have mailed or otherwise delivered.
Company's postdated check
If company own PDC - reverted to Cash and Accounts Payable; but if Customer's postdated check should not recorded as cash yet and remain in accounts receivable. Since there is no actual payment yet, as of that date. Such a check cannot possibly clear with the bank until the date indicated in the check.
Cash in bank
Includes demands deposits. These are unrestricted funds deposited in a bank that can be withdrawn upon demand such as amounts in checking and savings account.
Cash
Items that are unrestricted and immediately available for use in current operations. Shall be reported in the current assets section of the statement of financial position.
receivable account
Material shortage resulting from a cause of theft should be charged to a ______ if it is possible that the shortage is to be recovered.
Drawn Against Insufficient Funds; Drawn Against Unclear Deposits
NSF checks, in the Philippines, are oftentimes described as DAIF checks or DAUD checks.
Temporary investments in equity shares
Not included as part of cash equivalents because these equity securities do not have maturity dates.
Imprest fund system; Fluctuating fund system
Petty cash fund may be accounted for using the following two methods:
Cash in closed banks (or banks having financial difficulty or in bankruptcy)
Reclassified as receivable and should be written down to its recoverable amount.
redemption date; 3 months or less
Redeemable preference shares that are to be reacquired by the issuing corporation at a determined ______, are in substance debt investments, and as such, may qualify to be recorded as cash equivalents if purchased within _____ before redemption date.
Bank overdraft
Reported as liability and cannot be offset against a positive balance in another bank account with the same bank, unless there is a right of offset exists between the bank and the depositor.
Cash equivalents
These are short-term highly liquid investments that are readily convertible into cash and so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Limited to highly liquid investments that are acquired three months before maturity.
Cash on hand
These are undeposited cash collection and working funds.
Compensating balace
This is a minimum amounts that a company agrees to maintain in a bank checking account as a support or collateral for a loan by the depositor. When not legally restricted as to withdrawal and the loan for which it is used as collateral is short-term, this should be reported as part of cash. Otherwise, if legally restricted should be classified as current or non-current asset depending on the nature of the loan for which the compensating balance is set-up. If the problem is silent, this is assumed to be not legally restricted.
Imprest system; Petty Cash Fund
Under _____ of cash control, all cash receipts are deposited intact and all cash payment should be made by means of checks. However, it is impractical for the company to make each payment through check. Therefore, a _____ is established to cover small and miscellaneous expenditures.
Cash Management
Ways or systems to manage cash includes: segregation of duties for handling cash and recording cash transactions, Imprest System, Voucher System, Internal audits at irregular intervals, Periodic reconciliation of bank statement balance and cash balance in the company's records.
Undeposited cash collections
currencies such as bills and coins, customers' checks, traveler's checks, manager's checks, cashier's checks, bank drafts, money orders.
The determination of the maturity date starts from the ______ of the instrument and not from the date indicated on the date of the instrument.
date of acquisition
