Reporting Cash - Reporting Cash Cash consists of coins currency(paper money check money orders and money on hand or on deposit in a bank or similar

Reporting Cash Cash consists of coins, currency (paper money), check, money orders, and money on hand or on deposit in a bank or similar depository . Companies report cash in two different statements: the balance sheet and the statement of cash flows . The balance sheet reports the amount of cash available at a given point in time. The statement of cash flows shows the sources and uses of cash during a period of time. The cash flow statement was introduced in Chapters 1 and 2 and will be discussed in much detail in Chapter 12 . In this section we discuss some important points regarding the presentation of cash in the balance sheet. When presented in a balance sheet, cash on hand, cash in banks, and petty cash are often combined and reported simply as Cash . Because it is the most liquid asset owned by the company, cash is listed first in the current assets section of the balance sheet. Cash Equivalents Many companies use the designation “Cash and cash equivalents” in reporting cash. (See Illustration 7-11