Sunday, 22 February 2015

Cash Accounting


Cash (accounting)

The fund represents cash that the company has. The cash is an asset account that measures changes in cash during the year and the amount at the end of the year.

Types of cash in accounting

1 Issues in cash
2 Using the cash account
2.1 Finance and cash
2.2 Cash accounting

Issues of the body

The cash account is used to represent the value of cash. It has the characteristic of not affecting a particular recipe to a particular expense. This is the principle fund unit. An analysis of this particular check the nature of the cash flows in order to check possible abuse of corporate assets, flights ...

The advantage of a cash only basis is objectivity since there are no charges and calculated products.

The fund is available in the balance sheet as well as bank accounts and certain securities. The fund is therefore a basic part of the cash flow of the company. This account does not require restatement in the construction of functional assessment or cash tables. An effective way to analyze the fund is to achieve a cash flow budget.