1. Cash and cash equivalents
1.1. Cash
1.1.1. -readily available for unrestricted use -other negotiable instruments that are readily available and unrestricted may form part of cash -categorized into Cash on Hand, Cash in Bank, and Cash Funds
1.1.1.1. cash in accounting is different with the cash referred in law - in law, cash should be legal should be legal tender
1.1.1.1.1. Cash on Hand- coins and currencies, checks and other intruments
1.1.1.1.2. Cash in bank- demand deposits, savings, current/ checking
1.1.1.1.3. Cash fund for (CA)- petty cash fund, dividend fund, tax fund, and etc.
1.2. Cash Equivalents
1.2.1. -short-term, highly liquid investments -readily convertible into cash - acquired 3 months or less before maturity Examples: money market, treasury bills, 3-month time depositsdeposits
2. Bank reconciliation
2.1. a report that is prepared for the purpose of bringing balances of cash (a) per records and (b) bank statement into agreement, prepared monthly
2.1.1. Bank to book balance
2.1.1.1. starts with bank's ending balance, and adjust to book
2.1.2. Unadjusted to adjusted balance
2.1.2.1. starts with the unadjusted balance of both bank and book statement
2.1.2.1.1. Bank reconciling items
2.1.2.1.2. Book reconciling items
2.1.3. Book to bank balance
2.1.3.1. starts with book's ending balance, and adjust to bank