NOTES:

Coins and currencies **Both are interest bearing

 BANK OVERDRAFT
 should not be offset against current accounts with
Petty cash fund/payroll positive or debit balances except if the overdraft
fund/fund for taxes and
dividends and the account with a positive balance are in the
same bank – cash shall be shown net of overdraft
 if material should be reported as a current liability
CASH ON HAND Undeposited checks or  COMPENSATING BALANCE
collections
 LEGALLY RESTRICTED
o short-term – part of current assets but
separately from cash
Money orders o long-term – part of non-current assets
(remittance) (investment)
 NOT LEGALLY RESTRICTED
o part of CASH
CASH Savings deposit**
(ATM)
Personal check
(most common)
Demand deposit**
(check/current account -
CASH IN BANK passbook & checks)
Certified check
(with verification process -
"CERTIFIED" or "ACCEPTED")
Checks received from
customer

Cashier’s/Manager’s check

Bank draft

Traveller's check
Compensation Balance
(if not legally restricted or
unrestricted)
 CASH
→short-term (debt instrument)

EQUIVALENTS
→highly liquid
→near maturity (acquired 3
months or less from maturity date)

→1 year and below →10 years or more

→maturity date is 90 →1 to 10 years → maturity from date
days or less →maturity from date of of purchase is 90 days
TREASURY purchase is 90 days or
less
or less
TREASURY
BILLS TREASURY NOTES BONDS

→ CASH EQUIVALENT -
→acquired and due
3 months or less
→ SHORT-TERM in 60 days
INVESTMENT - more
than 3 months to 1 year
→ LONG-TERM
INVESTMENT - more
TIME
than 1 year REDEEMABLE
MONEY PREFERENCE
DEPOSIT MARKET
COMMERCIAL
SHARES
PLACEMENT PAPER