Podcast
Questions and Answers
Which of the following items would be measured at face value?
Which of the following items would be measured at face value?
- Closed bank accounts
- Foreign currency (correct)
- IOUS
- Postage stamps
According to PAS 1, what is the recognition criteria for cash?
According to PAS 1, what is the recognition criteria for cash?
- Restricted
- Designated
- Segregated
- Unrestricted (correct)
Which of the following is not considered cash on hand?
Which of the following is not considered cash on hand?
- Cash fund
- Coins and currencies
- Customer checks
- Cash in bank (correct)
Which item is classified as 'Accounts Receivable' instead of cash?
Which item is classified as 'Accounts Receivable' instead of cash?
An entity has several checks. Which check should not be classified as cash?
An entity has several checks. Which check should not be classified as cash?
Which of the following instruments is not classified as cash?
Which of the following instruments is not classified as cash?
What valuation method is used for cash held in a closed bank?
What valuation method is used for cash held in a closed bank?
Which of the following items is not classified as cash?
Which of the following items is not classified as cash?
An entity received a check, but it is dated next month. How should this post-dated check (received) be classified?
An entity received a check, but it is dated next month. How should this post-dated check (received) be classified?
Which of the following is not considered cash or a cash equivalent?
Which of the following is not considered cash or a cash equivalent?
Flashcards
PAS 1 (Cash)
PAS 1 (Cash)
The standard for recognizing cash which allows unrestricted use.
Cash Measurement
Cash Measurement
For local currency it's measured at face value. For foreign currency it's measured at face value(spot rate). For closed banks it's measured at Net Realizable Value.
Cash
Cash
Items readily available like coins, currency, and funds in checking accounts.
Cash Equivalents
Cash Equivalents
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Cash on hand
Cash on hand
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Stale Checks (Received)
Stale Checks (Received)
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Undelivered Checks
Undelivered Checks
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Post-Dated Checks (Issued)
Post-Dated Checks (Issued)
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Post-Dated Checks (Received)
Post-Dated Checks (Received)
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NSF Checks (Received)
NSF Checks (Received)
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Study Notes
- Cash and Cash Equivalents are recognized under PAS 1 (unrestricted)
Cash Measurement
- Local currency is measured at face value
- Foreign currency is measured at face value (spot rate)
- Closed banks are measured at Net Realizable Value (NRV)
Examples of Cash
- Cash on hand
- Cash in bank
- Cash fund
Cash on Hand Details
- Coins and currencies are classified as cash
- Customer checks are classified as cash
- Personal checks are classified as cash
- Cashier's checks are classified as cash
- Manager's checks are classified as cash
- Traveler's checks are classified as cash
- Certified checks are classified as cash
- Stale checks (issued) are classified as cash
- Stale checks (received) are classified as No - AR/Loss
- Undelivered checks (issued) are classified as cash
- Undelivered checks (received) are classified as No - AR
- Post-dated checks (issued) are classified as cash
- Post-dated checks (received) as classified as No - AR
- NSF checks (issued) are classified as cash
- NSF checks (received) are classified as No - AR
- Money orders are classified as cash
- Bank drafts are classified as cash
- IOUs are classified as No - AR
- Advances to employees are classified as No - AR
- Postage stamps are classified as No - Supplies
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