FINANCIAL ACCOUNTING AND
REPORTING EXAM QUESTIONS AND
THEIR CORRECT SOLUTIONS
includes currency or cash items on hand as well as
peso or foreign currency deposits in banks which are
unrestricted and immediately available for use in the
current operations
cash or cash on hand and in banks
PAS 1 provides that "an entity shall classify an asset
as current when the asset is cash or a cash equivalent
unless it is restricted from being exchanged or used
to settle a liability for at least 12 months after the end
of reporting period.
unrestricted cash
an item must be unrestricted in use, this means that
the cash must be readily available in the payment of
current obligations and not be subject to any
restrictions, contractual or otherwise
cash
following cash items
cash on hand
cash in bank
cash fund
cash on hand?
, includes undeposited cash collections and other cash
items awaiting deposit e.g. customer's, cahier's or
manager's, traveler's checks, money order, bank draft
an official piece of paper with an amount of money
written on it that you can send or give to someone,
who can then exchange it.for the same amount of
money
money order
a check drawn by a bank on its own funds in another
bank.
bank draft
cash in bank?
includes unrestricted as to withdrawal savings deposit or
checking account and demand deposit
cash fund?
set aside for current purposes such as petty cash fund,
payroll fund (employee's salary), and dividend fund (stock
redemption fund) (undeposited cash, foreign currency,
time deposit)
short-term and 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;
only high liquid investments that are acquired 3
MONTHS BEFORE MATURITY
cash equivalents
examples of cash equivalents
three month BSP treasury bill
three year BSP treasury bill purchased 3 months before
the maturity date
REPORTING EXAM QUESTIONS AND
THEIR CORRECT SOLUTIONS
includes currency or cash items on hand as well as
peso or foreign currency deposits in banks which are
unrestricted and immediately available for use in the
current operations
cash or cash on hand and in banks
PAS 1 provides that "an entity shall classify an asset
as current when the asset is cash or a cash equivalent
unless it is restricted from being exchanged or used
to settle a liability for at least 12 months after the end
of reporting period.
unrestricted cash
an item must be unrestricted in use, this means that
the cash must be readily available in the payment of
current obligations and not be subject to any
restrictions, contractual or otherwise
cash
following cash items
cash on hand
cash in bank
cash fund
cash on hand?
, includes undeposited cash collections and other cash
items awaiting deposit e.g. customer's, cahier's or
manager's, traveler's checks, money order, bank draft
an official piece of paper with an amount of money
written on it that you can send or give to someone,
who can then exchange it.for the same amount of
money
money order
a check drawn by a bank on its own funds in another
bank.
bank draft
cash in bank?
includes unrestricted as to withdrawal savings deposit or
checking account and demand deposit
cash fund?
set aside for current purposes such as petty cash fund,
payroll fund (employee's salary), and dividend fund (stock
redemption fund) (undeposited cash, foreign currency,
time deposit)
short-term and 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;
only high liquid investments that are acquired 3
MONTHS BEFORE MATURITY
cash equivalents
examples of cash equivalents
three month BSP treasury bill
three year BSP treasury bill purchased 3 months before
the maturity date
