INTERMEDIATE ACCOUNTING 1 o Large purposes

Cash and Cash equivalents o Mr. X will request bank drafts from BDO then BDO will
Types check if the amount is available. BDO will transfer the
 Cash on Hand amount to bank draft.
- Coins and currencies o Bank account  Bank Draft
- Petty Cash Fund
- Undeposited Collections Cash Equivalents
- Money order (Remittances) - Short term
 Cash in Bank - Highly liquid investments
- Savings Deposit - Convertible into cash
 ATM Qualified:
 Interest bearing - Debt instruments (interest earning) acquired 3mos or less
- Demand Deposit (aka Checking/Current Account) before maturity.
 Checks can be deposited or encashed Illustrations:
 Passbook + Checks 1. Treasury Bills
 Interest bearing - PH Govt issues  Treasury Bills/T-Bills  Investors (individuals,
 Checks received from customers companies)  Magbibigay sila cash sa govt then sila ay
4 types of checks mageearn ng  interests kaya siya qualified as cash equivalents.
1. Personal Checks - Treasury – nagiissue and BTr.
o most common, usually ginagamit in everyday operation. - 90 days or less
Disadvantage: Possible tumalbog yung check. 2. Treasury Notes.
o Client  ABC - 1-10yrs
2. Certified check 3. Treasury Bonds
o may verification process. “Certified” or “accepted”. May - 10 yrs or more.
guarantee si bank na may pera talaga sa bank. 4. Time deposit
o Client  BDO’s verification  ABC - 30,60,90,180,360 days…
3. Cashier’s/Manager’s Check - Withdrawable upon maturity
o Customer  Bank  ABC - Masmataas interest compare sa savings and demand deposit.
o Check is now under BDO’s name 5. Money-market placement
4. Traveler’s Check - Mutual Funds
o Being accepted in any denomination by any countries - Unit Inevstment Trust Funds
o Mr X. goes to US, Japan, Korea 6. Commercial Paper
o Mr X  Cash  BDO  Traveler’s check  Mr. X - Large corporations
5. Bank Drafts
- Investor’s Cash 900  SM will issue investor a commercial paper
sthen upon maturity bibigyan ni sm si Investor ng 1000. Yung
100 ay interest.