Studied by 0 people
Looks like no one added any tags here yet for you.
Cash
includes money or equivalent or other instrument use to settle obligations that is readily available for unrestricted use.
Money
standard medium of exchange and basis of accounting measurements.
Cash on Hand
undeposited collection and other current funds held as of the reporting date.
Cash in Bank
deposits in bank that are ready for immediate withdrawals and unrestricted use.
Bank Drafts
guarantees by bank to advance funds on the demand by the party to whom the draft was directed.
Money Orders
similar to bank drafts but drawn from post office or other financial institutions.
Revolving Fund
fund set by management which they use it for specific purpose or limited use.
Postdated Checks
checks dated at the future date.
Unused Credit line
difference between line of credit and the amount that was actually borrowed.
Postdated Check Received
revert back using accounts receivable.
Postdated/Undelivered Check Drawn
revert back using accounts payable.
Stale checks
when checks delivered to payee but not encashed within a relatively long period of time, normally 6 months or more.
Cash Equivalent
short term highly liquid investment that are readily convertible to know amount of cash and which are subject to insignificant amount of risk of changes in value.
Treasury Bill
Short term obligation issued by the government with the maturity of 90 days.
treasury note
Long term obligation issued by the government with the maturity of 1 year to less than 10 years.
treasury bond
Long term obligation issued by the government with the maturity of 10 years or more.
Money market instruments
short term securities investment in portfolio.
Time Deposits
form of bank deposits normally made in fixed denominations
Face Value
measurements of cash
Realizable Value
amount expected to be recovered from the deposit and is determined usually to reference to the ensured amount of the deposit.
Compensating Balance
minimum amount that must be maintained in an entity’s bank account as support for funds borrowed from the bank.
Bank Overdraft
is a credit balance in the bank in the cash in bank resulting from overpayment of check in excess of amount deposit.
Segregation of incompatible duties
the duties of authorization, execution, recording, custody shoud be segregated
Imprest System
requires that all cash receipts should be deposited intact and all cash disbursement should be made through check.
Bank Reconciliation
should be prepared regularly, immediately upon receipt of monthly bank statement .
Cash Counts
Actual cash tallies with the balance per records.
Voucher System
an internal control over all cash disbursement.
Voucher
a written authorization or business document that supports every disbursement made by the entity.
Shortage
Cash count result to the amount less than the balance per record.
Overage
Cash count result to the amount more than the balance per record.
Suspense Account
Cash shortage or overage account.
Receivables
account where shortage is closed when it was due to the fault of the employee.
Payable
account where overage is closed when it was due to the fault of the employee.
Gain
when overage reported as no merit.
Loss
when shortage reported as no merit.
Lapping
occurs when collection of receivable from customer is misappropriated and then concealed by applying a subsequent collection from another customer.
Kiting
occurs when cash shortage is concealed by overstating the balance of cash
Overstated
the balance where the receipt is reported in the current period while the disbursement is recorded at the next period.
Understated
the balance where the receipt is reported in the next period while the disbursement is recorded at the current period.
Window dressing
Occurs when books are not closed at the year end and transactions in the subsequent period are deliberately recorded in the current period in order to improve financial performance
Petty Cash Fund
money set aside to defray relatively small amounts of cash disbursement
Note 
Flashcard (85)