part 1 auditing and assurance

It comprises cash on hand and demand deposits.

These are short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

Undeposited collections of currency and checks

Demand deposits

Fund set aside for current operation

Translated to Philippine pesos using the current exchange rate on reporting date.

Cash fund is presented as noncurrent asset and classified as long-term investment. (

Offsetting may be done if the entity has more than one bank accounts in the same bank or when the amount is deemed immaterial.

Checks not yet released to payee should still form part of the cash and cash equivalents balance.

Delivered to payee should still form part of the cash in bank balance. Still considered as accounts payable