Far 1- Cash and Cash Equivalents

Card Set Information

Author:
dan1braden
ID:
213173
Filename:
Far 1- Cash and Cash Equivalents
Updated:
2013-04-13 23:47:58
Tags:
Accounting
Folders:

Description:
Financial Accounting
Show Answers:

Home > Flashcards > Print Preview

The flashcards below were created by user dan1braden on FreezingBlue Flashcards. What would you like to do?


  1. Assets are broken down into current and non-current in the B/S so what are current assets?
    Current Assets are assets that will be used up or converted into cash within one year or the operating cycle, whichever is longer.
  2. Liabilities are broken down into current and non-current in the B/S so what are current Liabilities?
    Current Liabilites are liabilities that will be settled within one year or the operating cycle whichever is longer.
  3. What is a cash Equivalent?
    • A cash equivalent is a security that is easily converted into cash with an original maturity of 90 days or less. A cash equivalent is a financial instrument that is both 
    • -highly liquid means easily convertable to cash
    • -and originates in 90 days or less from when you the company get the securities. 

    Examples include Coin, money market accounts, unmailed checks, savings accounts, negotiable paper.
  4. What is a bank reconciliation?
    bank reconciliations are used to reconcile differences between cash balances per bank and per book to arrive at corrected amounts. 

    • Balance on Bank Statement 
    • +Deposits in transit
    • -Outstanding checks
    • +/- Errors made by bank
    • =Corrected Balance

    • Checkbook Balance
    • +Amounts collected by bank 
    • -Unrecorded bank charges
    • +/- Errors made in recording transactions
    • =Corrected Balance
  5. What is a Current Asset under IFRS?
    • Current assets is classified if current when: 
    • 1. the entity expects to realize the asset or to consume or sell it within 12 months or the normal operating cycle. or
    • 2. the entity holds the asset primarily for the purpose of trading.
  6. What is a Current Liability under IFRS?
    • A liability is current when: 
    • 1. the entity expects to settle the liability within the normal operating cycle 
    • 2. the liability will be settled within 12 months after the reporting period, or
    • 3. the entity holds the liability for the purpose of trading.

What would you like to do?

Home > Flashcards > Print Preview