CASH. Agapito , Paul Dela Cruz, Pauline Lucman , Fatimah Torio , Jeandie. WHAT IS CASH?. Available for immediate use/ general use Involves bills, currency, notes, coins, checks (unless bounce) postal money orders. Can be on hand or in bank
Dela Cruz, Pauline
-particular item or medium of payment
that can be used extinguish a debt, or
meet a financial obligation.
a.) CASH ON HAND – customer’s checks
- cashier’s or manager’s checks
- traveler’s checks
- bank drafts
- money orders
b.) CASH IN BANK – demand deposits
- checking account and saving deposits
unrestricted as to withdrawal.
c.) CASH FUND - petty cash fund
- payroll fund
- dividend fund
*Translate to reporting currency using SPOT RATE.
- the exchange rate at the time of reporting.
- attitude of management and employees
- tone at the top
- dictates the risk
- identifying and assessing the risk and their impact in the organization
- COMMON RISK: CREDIT/COLLECTABILITY RISK
- how you manage your risks
- the mechanisms/ practices or procedures to address the risks that you have identified
- how information flows in the company in order to function effectively.
- how to disseminate information
- “are we on the right track?”
- you monitor what is happening in an organization for corrections.
- separating accounting & cash custodianship
- prone to theft
- disbursement function
- prevent control
*voucher – proof, supported by documents
- connected to payments and withdrawal
- fund transfer from on account to another
- is issued when an entity is receiving cash
- detect control
- a process of reconciling your cash balance per book and cash balance per bank
- check is drawn against a first bank and depositing the same check in a second bank
- covering cash shortage in the latter bank
- usually done at the end of the month
- stealing & patching collections from customers
- applies to the entirely F/S
- any deliberate misstatement
- untruth or falsity statements