Distinguish items that are reported as cash
The items that are reported as cash on a company's balance sheet typically include:
1. Cash in the bank: This includes physical cash, deposits in checking/savings accounts, and certificates of deposit.
2. Petty cash: This refers to small amounts of cash kept on hand for the purpose of making small expenditures.
3. Receivables: This includes money owed to the company by customers or clients for goods or services provided.
4. Marketable securities: This includes investments that can be easily converted into cash, such as stocks or bonds.
5. Cash equivalents: This includes short-term investments that can be easily converted into cash, such as treasury bills or commercial paper.
6. Loans: This includes loans made by the company to others, such as customers or employees.
7. Prepaid expenses: This refers to expenses paid for in advance, such as insurance premiums or rent.
8. Accrued revenues: This includes revenue for which payment has not yet been received, such as an account receivable that has been recorded but not yet collected.