FINANCIAL ACCOUNTING AND
REPORTING
(Study Guide, May 2023)
1.) Cash and other Financial Assets
A. Cash and Cash Equivalents
I. Cash
Definition
Composition of cash
Items not included
as cash
Postdated checks
(received vs drawn)
Unreleased checks
Stale checks
Unused credit line
Bank overdraft
Compensating
Balance
Deposit in Foreign
Currency
Cash Fund
(Classification)
Measurement
Presentation in FS
Accounting for Cash
Shortage and
Overages
Concealment of Cash
Shortage
Internal Controls
II. Cash Equivalents
Definition
Examples
Classification of
investment of excess
cash
Checks and equity
securities
FINANCIAL ACCOUNTING AND
REPORTING
(Study Guide, May 2023)
B. Petty Cash Fund
Imprest Fund System
Accounting for PCF
Establishment of PCF
Disbursements
Replenishment
Shortage vs Overage
C. Bank Reconciliation
Definition
Importance
Pro-forma
Reconciling Items
Book
◦ Credit Memo
◦ Debit Memo
Bank
• Deposit in
Transit
➢ COMPUTATION
•
Outstanding
Checks
➢ COMPUTATION
Forms
Adjusted Balance
Book to Bank
Bank to Book
Book and Bank Errors
Proof of Cash
Book debits and
bank
credits/receipts
COMPUTATION
Book credits and
Bank debits
COMPUTATION