Intacc

• Cash


  Money, medium of exchange, currency (bills) and coins, legal tender (Peso)
• Cash


  Any other negotiable instruments (payable in money + acceptable by the bank for deposit and immediate credit), checks, bank drafts, postal money orders, currency demand deposits with banks
• Cash


  Unrestricted and immediately available for use in current operations, for payment of operating expenses, for payment of current liability, for acquisition of current assets
• Cash Items


  • Cash on hand (undeposited cash collection, bills, coins, other cash items awaiting deposit)
  • Customer's Check
  • Manager's Check
  • Cashier's Check
  • Traveler's Check
  • Bank draft
  • Money Order
• Customer's Check


  • Check paid by customer, not sure if there is fund as no guarantee of available fund
• Manager's Check


  • Guaranteed by the manager, money already deducted from the bank
• Cashier's Check


  • Guaranteed by the cashier, money already deducted from the bank
• Traveler's Check


  • Check carried by travelers abroad if they don't want to carry a lot of cash
• Bank draft


  • Guaranteed by the bank, document written by the bank to assure there are funds
• Money Order


  • Other financial institution (paper = cash as it can be exchanged for money)
• Checks (Problems)


  • Undelivered Checks
  • Postdated Check Delivered (Company)
  • Stale Check or check long outstanding
• Cash in Bank


  Unrestricted to withdrawal, demand deposit / checking account, where checks come from
• Compensating balance


  Minimum checking or demand deposit account balance that must be maintained due to borrowing arrangement with bank, partial compensation for the loan extended, restriction but not cash
• Bank overdraft


  CIB account has a credit balance, issuance of checks in excess of the deposits, current liability, offsetting not allowed but can be offset against other accounts in the same bank, not permitted in the Philippines
• Cash Fund


  • Petty cash fund
  • Payroll fund
  • Travel fund
  • Interest fund
  • Tax fund
  • Sinking fund
  • Preference share redemption fund
  • Contingent fund
  • Insurance fund
  • Fund for acquisition or construction of PPE
• Cash Equivalents


  Short-term and highly liquid investments that are readily convertible into cash and so near their maturity that they have insignificant risk of changes in value because of changes in interest rate
• Cash Equivalents


  • Three-month BSP treasury bill
  • BSP treasury bill purchased three months before maturity date
  • Three-month time deposit
  • Three-month money market instrument or commercial paper
• Equity securities do not qualify as cash equivalents as they do not have a maturity date
• Preference shares with specified redemption date and acquired three months before redemption date qualify as cash equivalents
• Time Period of Investment of excess cash

  • 3 months or less -> cash equivalents
  • 3 - 12 months -> short-term investment
  • more than 1 year -> long-term investment