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Friday, March 29, 2013

Cash Accounting

Cash is current assets in a company that consist of paper money or coins and other letter, it has characteristics like money that mean can use as payments utensils or exchange media, however cash is assets that doesn't productive, it's mean it can't cause revenue, so far not exchange with other assets.
That is way the characteristics, then the accounting way on cash be important, especially for interesting cash analysis control.

Cash Composition
 Beside of cash characteristic above , the includes cash group such as :
  • Cash
  • Save money at bank that taken everythings
  • Check that accepted as payment from other side
  • Traveler check is check that out by a bank to service relation that did long travel cost, example transportation cost, and lodging cost. 
          Advantage use traveler check, this check can be likuid at branch bank publisher in other city, so don't  need to bring cash in many amount , except that if lost can be exchange by publisher bank.
  • Casier check is check that made and is signature by a bank , are pulled by bank. This Casier check is command letter from bank to other bank it self for doing payment to other side.
  • Pos points includes in cash group because of characteristics can be immediately be cash in need.
This isn't includes of cash :
  1. Time deposit : save money in bank that just use it taken after time period.
  2. Securitas
  3. Money is available to purpose.
  4. Notes Receivable
  5. Post date check
  6. Postage stamp

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