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Conceptual Framework and Accounting Standards > Cash and Cash Equivalents > Flashcards

Cash and Cash Equivalents Flashcards

1
Q

5 Financial Statements

A
  1. Statement of Financial Position / Balance Sheet
  2. Statement of Comprehensive Income / Income Statement
  3. Statement of Cash Flows
  4. Statement of Changes in Equity
  5. Notes to Financial Statements
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2
Q

It is the ability of the asset to be converted into CASH.

A

Liquidity

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3
Q

Line Items in the Statement of Financial Position based on Liquidity

A

Cash and Cash Equivalents
Trade and Other Receivables
Inventories
Investments
Property, Plant and Equipment
Intangible Assets
Other Assets

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4
Q

Money that can be found in the PREMISE of the COMPANY

A

Cash on Hand

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5
Q

Policies used by the company to protect its ASSETS against FRAUD such as THEFT. / Safeguarding of assets

A

Internal Control

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6
Q

Money that can be found in the physical and digital bank

A

Cash in Bank

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7
Q

Is Check a Cash or not?

A

Check is NOT CASH but it is accepted as a SUBSTITUTE for CASH

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8
Q

Check from Customer

A

Collections/Cash Inflow

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9
Q

Check from Company

A

Disbursements/Payments/Cash Outflow

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10
Q

Internal Control Policy to regulate the cash outflows

A

Imprest System

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11
Q

Fund set aside for Small Disbursements

A

Petty Cash

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12
Q

Instruments from the bank used for Large Disbursements

A

Check/Cheque

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13
Q

Measurement of Cash

A

FACE VALUE

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14
Q

Measurement of Cash in Foreign Currency
*Spot Rate/On the Spot Rate

A

CURRENT EXCHANGE RATE

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15
Q

The check is OUTSTANDING for AT LEAST 6 MONTHS

A

Stale Check

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16
Q

The check has not been encashed or deposited to the receiving bank

A

Outstanding

17
Q

The check is issued but not yet delivered

A

Undelivered Check

18
Q

The date of the check is post dated, later than the issue date

A

Post Dated Check

19
Q

The date of the check is earlier than the issue date

A

Ante-Dated

20
Q
A

Window Dressing

21
Q

Sinking fund is treated as ____ ____ __________ because the bonds payable is due BEYOND 12 MONTHS after the reporting period.
It is also treated as that when the problem is silent.

A

Long Term Investment

22
Q

ASSETS:PURCHASE/CONSTRUCTION
Current Assets (Merchandise Inventory & Prepayments) - It is for the business operation/day-to-day operation

A

CASH

23
Q

ASSETS:PURCHASE/CONSTRUCTION
Non-Current Assets/Long-Term Assets - Property, Plant, and Equipment - Land, Building, Machinery, Equipment, Furniture and Fixtures

A

LONG TERM INVESTMENT

24
Q

Patent, Copyright, Trademark, Franchise

A

Intangible Assets

25
Q

LIABILITIES:SETTLEMENT
Current Liabilities (Accounts Payable, Accrued Expenses)

A

CASH

26
Q

LIABILITIES:SETTLEMENT
Non-current Liabilities (Bonds Payable, Mortgage Payable)

A

LONG TERM INVESTMENT

27
Q

(Current/Non-Current) If the liability is due WITHIN 12 MONTHS after reporting period

A

CURRENT

28
Q

(Current/Non-Current) If the liability s due BEYOND 12 MONTHS after reporting period

A

NON-CURRENT

29
Q

Short term highly liquid investment - MONEY MARKET and DEBT INVESTMENTS

Examples:
a. Money Market Placement - Money Market
b. Time Deposit - Bank
c. Treasury Bills / Bonds - Bureau of Treasury: Department of Finance > within 3 months / 90 days ang conversion from investment to cash

A

Cash Equivalents

30
Q

The amount presented is in NEGATIVE. It is generally classified as CURRENT LIABILITY.

A

Bank Overdraft

31
Q

Bank Overdraft can be NETTED to the other banks account if?

A

Same Bank

32
Q

Portion of the loanable amount retained by the bank.

A

Compensating Balance

33
Q

If the compensating balance is legally restricted, the compensating balance is?

A

Not treated as CASH
> if the contract is within 1 year - SHORT TERM INVESTMENT
> if the contract is beyond 1 year - LONG TERM INVESTMENT

34
Q

If the compensating balance is not legally restricted, the compensating balance is?

A

Cash
*when the problem is silent it is cash

Conceptual Framework and Accounting Standards (4 decks)

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