FAR 3.1 - Cash & Cash Equivalents

Question 1

If restricted cash is associated with a current asset or current liability, classify it as:

Answer 1

Current asset but separate from unrestricted cash

Question 2

If restricted cash is associated with a non-current asset or non-current liability, classify it as:

Answer 2

Aaa non-current asset separate from either the investments or other assets section

Question 3

What two items would need to be added/removed from the bank balance in a bank reconciliation?

Answer 3

Deposits in transit (add to the bank)
Outstanding checks (deduct from the bank)

Question 4

What 4 items are added/removed from the book balance in a bank reconciliation?

Answer 4

Service charges (deduct from books)
Bank collections (added to books)
Non-sufficient funds (deduct from books)
Interest income (added to the books)