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    Cash and Cash Equivalents

    Uploaded by

    Mariene Pagsibigan
    This document discusses various types of cash and cash equivalents. It defines coins, currencies, petty cash funds, payroll funds, taxes and dividends funds as types of cash on hand. It also discusses undeposited checks, money orders, savings deposits, demand deposits, checks received from customers, cashier's checks, bank drafts, and traveller's checks as types of cash in bank. Finally, it outlines various short-term and long-term debt instruments that are considered cash equivalents such as treasury bills, notes, and bonds based on their maturity dates.

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    Cash and Cash Equivalents

    Uploaded by

    Mariene Pagsibigan
    10 views2 pages
    This document discusses various types of cash and cash equivalents. It defines coins, currencies, petty cash funds, payroll funds, taxes and dividends funds as types of cash on hand. It also discusses undeposited checks, money orders, savings deposits, demand deposits, checks received from customers, cashier's checks, bank drafts, and traveller's checks as types of cash in bank. Finally, it outlines various short-term and long-term debt instruments that are considered cash equivalents such as treasury bills, notes, and bonds based on their maturity dates.

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    This document discusses various types of cash and cash equivalents. It defines coins, currencies, petty cash funds, payroll funds, taxes and dividends funds as types of cash on hand. It also discusses undeposited checks, money orders, savings deposits, demand deposits, checks received from customers, cashier's checks, bank drafts, and traveller's checks as types of cash in bank. Finally, it outlines various short-term and long-term debt instruments that are considered cash equivalents such as treasury bills, notes, and bonds based on their maturity dates.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    10 views2 pages

    Cash and Cash Equivalents

    Uploaded by

    Mariene Pagsibigan
    This document discusses various types of cash and cash equivalents. It defines coins, currencies, petty cash funds, payroll funds, taxes and dividends funds as types of cash on hand. It also discusses undeposited checks, money orders, savings deposits, demand deposits, checks received from customers, cashier's checks, bank drafts, and traveller's checks as types of cash in bank. Finally, it outlines various short-term and long-term debt instruments that are considered cash equivalents such as treasury bills, notes, and bonds based on their maturity dates.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    NOTES:

    Coins and currencies **Both are interest bearing

     BANK OVERDRAFT
     should not be offset against current accounts with
    Petty cash fund/payroll positive or debit balances except if the overdraft
    fund/fund for taxes and
    dividends and the account with a positive balance are in the
    same bank – cash shall be shown net of overdraft
     if material should be reported as a current liability
    CASH ON HAND Undeposited checks or  COMPENSATING BALANCE
    collections
     LEGALLY RESTRICTED
    o short-term – part of current assets but
    separately from cash
    Money orders o long-term – part of non-current assets
    (remittance) (investment)
     NOT LEGALLY RESTRICTED
    o part of CASH
    CASH Savings deposit**
    (ATM)
    Personal check
    (most common)
    Demand deposit**
    (check/current account -
    CASH IN BANK passbook & checks)
    Certified check
    (with verification process -
    "CERTIFIED" or "ACCEPTED")
    Checks received from
    customer

    Cashier’s/Manager’s check

    Bank draft

    Traveller's check
    Compensation Balance
    (if not legally restricted or
    unrestricted)
    CASH
    →short-term (debt instrument)

    EQUIVALENTS
    →highly liquid
    →near maturity (acquired 3
    months or less from maturity date)

    →1 year and below →10 years or more


    →maturity date is 90 →1 to 10 years → maturity from date
    days or less →maturity from date of of purchase is 90 days
    TREASURY purchase is 90 days or
    less
    or less
    TREASURY
    BILLS TREASURY NOTES BONDS

    → CASH EQUIVALENT -
    →acquired and due
    3 months or less
    → SHORT-TERM in 60 days
    INVESTMENT - more
    than 3 months to 1 year
    → LONG-TERM
    INVESTMENT - more
    TIME
    than 1 year REDEEMABLE
    MONEY PREFERENCE
    DEPOSIT MARKET
    COMMERCIAL
    SHARES
    PLACEMENT PAPER

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