• cash - medium of exchange

• all transactions are measured and recognized in financial statements

• keyword: unrestricted

• cash on hand

  • coins and currencies, check not postdated, money order (basta check)

  • postdated check - check in the future

    • di cash kasi may restriction, receivable siya eh

  • if posted checks are issued, these cash of the entity part of cash in bank(what) what does sir mean sa issued

    • careful sa issuer ng check, changes what it is

  • stale checks- checks not yet in cash by entity for at least 6 months

    • except if stale checks are issued by entity

  • di ko gets yung iba 4:30 abt cash issued emerut

• cash in bank

  • savings deposit and demand deposit

  • excludes:

    • time deposit, if more than 1 year, long term investment. cash equivalent lang if 3 months or less

    • bank overdraft - current liability except if may is a pang bank acct entity na positive balance tapos pwede maoffset

    • compensating balance legally restricted as to withdrawal - except if not legally restricted

    • unreleased checks - remain in possession of issuer

    • IOUs (I owe u)- receivables

• cash fund

  • tax fund, travel fund, any funds set aside for current purposes

  • excludes: funds set aside for non current purposes

    • bond sinking fund - bond is long term

      • except if bond is 1 year or less, current liability ang bond liability

    • asset replacement fund- set aside to acquire a new non-current asset

    • cash surrender value - fund related to life insurance of entity’s key officers ,, after expiration of term kaya non-current

    • other funds: contingent fund, insurance fund, etc

• cash equivalents

  • short term investments readable convertible to a cash

  • maturity 3 months or less from date of acquiring

  • includes

    • certificate of deposits

    • t-bills - issued by government (long term is treasury bonds pero can be cash)

    • commercial paper - like a tbill but w higher interest rates

    • money market funds

  • excludes

    • equity securities- unless redeemable

• sfp valuation

  • cash is face value

  • pag nabankrupt, nagiging receivable. acquired only at nrv

  • cash control system

  • imprest system - minimizes amount of cash being maintained in company to avoid possible cash related fraud

    • all significant payments in the form of checks except for small payments (petty cash fund)

    • petty cash fund- used to pay small expenses of company

      1. imprest system

         • same adjusting entry at year end sa payment of expenses

      2. fluctuating system

    • 

2. voucher system - all payments supported by a voucher, recorded in voucher register before recording in check register

3. segregation of duties - control preventing one person to have authorization, custody, and recording

4. periodic reconciliation of balances - bank reconciliation

   • 3 methods: book to bank method, bank to book method, adjusted balances method

   • adjusted book is same as adjusted bank balance

   • 28:00

• bank reconciling items

• book reconciling items

SYNCH SESSION NOTES:

• lease back transaction - u sell building then u still rent it

KAHOOT:

• false?

  false nga. annually yung financial statements na complete set

  sa financial accounting - comply with timing ng regulatory. pupublish quarterly dapat sa regulation

• true . . .

  false wtf

• yellow

  tamuh

• presented separately if material

  material - high amount

• true

  false

  other comprehensive income also comes in when building is revalued

  entity has option to divide these statements, hindi siya single statement lang

• true

• going concern

• twelve months

• false!

  function vs nature of expenses

• both red and blue

• true

• yellaw

• true

• 3 persons max

• 65 questions based on book

• required book bilhin

• submission on the day we discuss the topic

• madali lng daw sha magquiz hm

• chaps 1-2 ang quiz

• before we start on Friday nakasubmit na

• walang minus sa grades kung di perfect

HO PRAC. 1

1. postdated checks

SYNCH - 2

• Conceptual framework is being updated din.

• In cases di aligned, accounting standard will prevail

• In accounting, may ibang balances na estimates

• Real property increases as time passes by

• lahat ng cheks na nalabas sa company,

• a check that is not accepted for deposit bc of insufficient of funds

• nsf- check issues for insufficiency of fund (bouncing check) / the bank did not pay check bc bank balance is insufficient

• negative cash balance - overdraft

• sometimes depended sa bank yung ex. u have a balance of 20 and u write a check of 30 and they pay u, they’ll still pay u bc of good relationship

• certified check - needed bc of us

  • never bounces, already paid for by the buyer

  • 

  • never nastastale certified check

• wag sa columnar, thru pdf magpapasa ng answers