9 List the adjustments made to a bank … For example, staff may need to hand-carry cash to project sites, which may pose both personal and financial risks. Complying with CARE’s safety and security policies and procedures, 4. True b. What are Cash and Cash Equivalents? Retain documentation for all items of expenditure. Bloom’s: Remembering . • Cash Items Cash on Hand - Includes undeposited collections such as bills and coins, customer’s checks, manager’s checks, traveler’s checks, cashier’s checks, bank drafts and money order. Strategy goals, objectives and interventions, 1. Deduct (-) any BANK ERRORS that overstate cash. This limit applies to the total outstanding balance that a staff member can have before additional cash advances are issued. Confirm cash balances with financial institutions. Are pre-numbered receipts issued? Security of CARE infrastructure and assets, 11. Limit cash floats for purchases to a maximum of USD5,000. What to do: Critical actions for telecommunications and IT, 4. a. Cash on hand – refers to the undeposited collections awaiting deposit and other current funds held as of the reporting date. Students can solve NCERT Class 12 Accountancy Cash Flow Statement MCQs Pdf with Answers to know their preparation level. In an emergency situation, the focus of the finance department should be to provide cash/cash equivalents and other financial resources faster than usual to allow smooth programme implementation when and where needed. Cash and cash equivalents control procedures. AUDIT TECHNIQUES - Cash and Cash Equivalents / Summary. Additional guidelines for non-presence operations. Additional guidelines for non-presence operations, 1. 1151 0 obj <> endobj Cash balances are properly classified in the financial statements, and any restrictions on the availability of funds are properly disclosed. Criteria for deciding to engage in advocacy. Cash, as the term is used for the statement of cash flows, could indicate either cash or cash equivalents. Budgeting for monitoring and evaluation, 10. The statement shall use descriptive terms such as cash or cash and cash equivalents rather than Generally, only investments wi th maturity dates of less than three months can be considered a cash equivalent. Other liquid investments that mature within 3 months. The following are examples of cash and cash equivalents: a. Add Bank Credits, Deduct Bank Service Charges and NSF Checks 4. Adhere to general principles for cash control. The statement shall use descriptive terms such as cash or cash and cash equivalents rather than Overdrafts can be offset against cash in the same bank, but if the bank has insufficient cash at the same bank, it is reported as a current liability. Accountancy MCQs for Class 12 Chapter Wise with Answers PDF Download was Prepared Based on Latest Exam Pattern. The term ‘cash/cash equivalent’ encompasses physical cash as well as cheques and other cash-equivalent documents. 12. The actual limits used should be designated in terms of local currency by a person with sufficient authority, and take into account the purchasing power of foreign currencies in the local environment. CARE’s Humanitarian Accountability Framework (HAF), 4. Companies may elect to classify some types of their marketable securities as cash equivalents. Cash is the most liquid of assets, and cash items are generally classified as a current asset. Designed and developed by ACW. The bank statement as of December 31, 2005 showed a balance of P106,000. 0000000016 00000 n 2. ROGON, JOHN CARLO A. BSA 2-1 CASH AND CASH EQUIVALENTS (PROBLEMS) PROBLEM 1-1 The cash account of the Mapagkumbaba Inc. as of December 31, 2017 consists of the following: On deposit in current account with Real Bank P 900,000 Cash collection not yet deposited to the bank 350,000 A customer’s check returned by the bank for insufficient Fund 150,000 A check drawn by the Vice … Internal information management at the Country Office level, 6. View 444543934-Test-Bank-FAR-3-CPAR-docx.pdf from CLA FIL102 at University of Cebu - Main Campus. What not to do: Do no harm and other common mistakes! DIFFICULTY: Easy . PG Total Sales in 2014 = $83.06… Use cash facilitation in situations where CARE cannot open a bank account. Any items falling within this definition are classified within the current assets category in the balance sheet. Cash budgets must also identify the funding source(s) that will be used to cover the required expenditures. Account for all cash. 16. A powerpoint about Cash & Cash Equivalents Financial Accounting ... CASH IN BANK Jan 31 beginning balance 50,000 Feb 28 Book credits ( including NSF of P 5,000 and SC of P 1,000 for Jan) 180,000. 0 Upon comparing the bank statement with cash records, the following facts The Annex 17.19 Cash Request Form must be utilised. 3. Immediately document such receipts, whether in the form of cash or cheques, and issue to the payee a pre-numbered official receipt. 0000008745 00000 n 4. Rationalization: Those involved in a fraud are able to rationalize a fraudulent act as being consistent with their personal code of ethics.Some individuals possess an attitude, character, or set of ethical values that allow them to knowingly and intentionally commit a dishonest act. For example, if a staff member presents an acquittal or settlement for USD3,500 and leaves a balance of USD1,500 outstanding, it means that the maximum amount to be issued, should they require another advance, is USD3,500. 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