CASH AND CASH EQUIVALENTS
Cash– includes money and any other negotiable instrument that is payable in money and acceptable by the bank for
deposit and immediate credit.
Examples:
• checks
• bank drafts
• money orders
Unrestricted Cash
a. Cash on hand- includes undeposited cash collections and other cash items awaiting deposit
b. Cash in bank- includes demand deposit or checking account and saving deposit which are unrestricted as to
withdrawal
c. Cash Fund- set aside for current purposes such as petty cash fund, payroll fund, and dividend fund.
Cash Equivalents (PAS 7)- 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.
(Standard: ACQUIRED 3 MONTHS BEFORE MATURITY)
Examples:
