Cash item - qualifies for reporting as part of the account title “ Cash” if it is unrestricted and available for use in current operations.

Cash items - are unrestricted if they are on hand, or in the case of deposits with banks, they can be withdrawn immediately.

Cash items - are immediately available for use in current operations if they are available for payment of current obligations or operating expenses or acquisition of current assets.

Cash equivalents - are short term investments with a maturity date of three months or less from the date of acquisition. These are highly liquid financial instruments/commercial papers. examples are: certificate of time deposits, short-term treasury bills with maturity date of three months or less from the acquisition date.

BANK RECONCILIATION STATEMENT - A report that reconciles the cash in bank balance per books and the cash balance per bank statement.

Deposit in transit / undeposited collections – cash received by the company which are already debited to cash but NOT yet received by the bank.

Outstanding Checks – check issued by the company but NOT yet presented to the bank for payment.

Bank service charge – Bank charges which are NOT yet recorded by the company.

NSF/DAIF check – Customer’s check returned by the bank to the company. The amount of the check was charged to the company’s account.

Bank Error - Erroneous bank credit or erroneous bank charges

Book Error - erroneously recorded

Credit Memos - deposits the bank directly added to the company’s account.

Debit Memos - charges against the depositor’s account made directly by the bank.

PETTY CASH FUND - amount of cash set up for small and immediate amount of expenses.