A reported cash line starts with rights and availability, not with one account name. The first lesson separates demand deposits from qualifying cash equivalents and amounts whose use is restricted. It also shows how a compensating balance changes available cash and borrowing cost.
The second lesson reconciles one bank account. Timing items adjust the bank side. Transactions first reported by the bank adjust the book side and require entries. The worked example then joins the reconciled deposit to a qualifying Treasury bill while keeping restricted cash visible in its proper location.
Boundary
This module uses one reporting entity, one currency, one bank account, supplied contract terms, and whole-dollar facts. It excludes foreign currency, overdraft offset questions, custodial funds, digital assets, fraud investigation, escheatment conclusions, and detailed bank-confirmation procedures. It does not turn a bank reconciliation into proof that every cash account exists or that every restriction is complete.
Module outcomes
Classify cash equivalents, restricted cash, and compensating balances from controlled instrument, maturity, restriction, and availability facts.
Prepare both sides of a bank reconciliation, record book-side items, and investigate old or unexplained differences.
Separate a reconciled deposit balance from the broader cash and cash-equivalent amount reported in the financial statements.
Learning sequence
Follow the dependency order, or open the lesson you need.
