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Cash definition

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Cash definition

  • This topic has 1 reply, 2 voices, and was last updated 4 years ago by John Moffat.
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  • September 9, 2021 at 4:38 pm #635157
    James124
    Participant
    • Topics: 166
    • Replies: 138
    • ☆☆☆

    There are two definitions of cash, I am confused that both are contradicting.

    Statement 1:
    Cash consist of cash in hand and deposit repayable upon demand, less overdrafts.

    Statement 2:
    Cash is defined as cash in hand and bank current account balances, including overdrafts.

    September 10, 2021 at 8:06 am #635241
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54804
    • ☆☆☆☆☆

    Both statements are correct except, of course, bank overdrafts reduce the total because they are negative balances.

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