91Ó°ÊÓ

Items

Classification

Explanation

a

Cash

Coins and currency are considered cash commodities because they are not unrestricted.

b

Trading securities

U.S. Treasury bonds are considered trading securities because they are used to control financial activities.

c

Temporary investment

Certificate of Deposit issued for only 5 months is considered as a temporary investment as it invests for a shorter duration.

d

Receivable

Cash in a bank that is in receivership is a transaction that is considered receivable from the bank.

e

Receivable

NSF check is a transaction that is considered to be receivable from the bank.

f

Other assets

Deposits in a foreign bank where exchange capacity is limited are treated like other assets like investments.

g

Receivable

A post-dated check is considered receivable because it is considered collectible.

h

Investment

The cash used for the retirement of long-term bonds is treated as an investment to settle the bonds.

i

Cash

Deposits in transit are considered cash because it is the amount of cash that is yet to be processed by the bank.

j

Trading securities

Stocks are considered to be trading securities as these stocks are for a short duration of 3 to 12 months.

K

Cash

Savings and checking accounts are considered cash items because they are unrestricted items.

l

Cash

Petty cash is considered a cash item because it is an unrestricted item.

m

Prepaid expenses

Stamps are considered a prepaid expense or are also treated as an office supply inventory.

n

Receivable

Travel advances are considered receivable as they can be collected from employees through deduction of salaries.