Cash Flashcards
(6 cards)
1
Q
Cash readily available
A
Coin/currency on hand
Demand deposits (checking account)
Time deposit (savings account)
Near cash assets
-negotiable instruments (money order, certified check)
-deposits in transit
-depositable (excluding unsigned/postdated checks)
-checks written but not mailed/delivered at balance sheet date
2
Q
Restricted cash
A
cash designated for special uses, should be separately presented
-bond sinking funds, new building funds, restricted compensating balances
nature of the restriction determines current/noncurrent
3
Q
Additions to book balance
A
interest earned
deposits collected
errors
4
Q
Additions to bank balance
A
Deposits in transit
errors
5
Q
Subtractions to book balance
A
Service charge
NSF checks
errors
6
Q
Subtractions to bank balance
A
outstanding checks
errors
