Why ending cash and cash equivalents balances are smaller than monetary funds

I think it's normal. Your monetary funds include funds in other currencies.

It may be a deposit or security deposit, and such funds cannot be placed in the "closing cash and cash equivalents balance". Moreover, the cash flow statement is being adjusted.

, depending on what kind of cash flow you put in when you received the deposit to make accounts, you need to deduct this part of the restricted assets from the corresponding cash flow.

in the income statement.

Closing cash and cash equivalents balances".

than in the balance sheet.

Monetary funds "small??

Who's in the income statement.

Closing cash and cash equivalents balances".

The closing balance of cash and cash equivalents in the cash flow statement should be greater than or equal to the amount of monetary funds in the balance sheet.

1. Some companies not only hold cash, but also cash equivalents. Cash equivalents refer to investments that are held by a company for a short period of time, are highly liquid, are easy to change into a known amount of cash, and have little risk of value changes. Generally, it refers to bonds with a maturity of 3 months from the date of purchase.

2. The difference between cash equivalents and cash.

Cash is banknotes and coins that can be used at the discretion of the company. Cash is a general ledger account in the accounting of Chinese enterprises, which is incorporated into monetary funds in the balance sheet and listed as current assets, but cash with special purposes can only be listed as non-current assets as ** or investment projects.

3. Cash equivalents refer to short-term and highly liquid short-term investments, which can be regarded as cash because they are easy to realize and have low transaction costs.

4. It may be that the fixed deposit disrupts the cash flow, and some enterprises hold the fixed deposit as other monetary funds, and other monetary funds are included in the "monetary funds" statement item.

Borrow: Funds in other currencies – fixed deposits.

Credit: Bank deposits.

It is true that listed companies do include fixed deposits in cash outflows from operating activities or cash outflows from investment activities in their financial statements, and the common point is that they do not consider fixed deposits to be cash and cash equivalents.

This has led to the situation you are talking about, and it has also caused the information to be incomparable. It shows that the standard level of the cash flow statement in the Accounting Standards for Business Enterprises needs to be improved.

Cash and cash equivalents.

The decrease indicates that the unit has purchased and purchased assets or made payments.

Accounting Standard for Business Enterprises No. 31 - Cash Flow Statement.

Treasury. Cai Hui [2006] No. 3): Specifically, it includes the following four aspects:

1) Cash in hand refers to the cash held by the enterprise that can be used for payment at any time, that is, with accounting.

The Cash account in is the same.

2) Bank depositsBank deposits refer to the deposits of enterprises in banks, and their differences are: deposits that cannot be used for payment at any time in the funds of banks or other financial institutions, which should not be used as cash in the cash flow statement, such as fixed deposits that cannot be withdrawn at any time.

Term deposits, on the other hand, which can be withdrawn with advance notice to banks or other financial institutions, are included in the cash concept in the cash flow statement.

3) Other monetary funds.

It refers to the funds deposited by the enterprise in the bank for a specific purpose or the funds that have not been received on the way, such as foreign deposits, bank draft deposits, bank cashier's check deposits, letter of credit guarantee funds, currency funds in transit, etc.

4) Cash equivalents refer to investments held by enterprises with short maturities, strong liquidity, easy conversion into known amounts of cash, and little risk of changes in value. The main feature of cash equivalents is that they are liquid and can be converted into cash investments at any time. Typically refers to the purchase of investments that mature or are ready to be converted into cash in three months or less.

Monetary funds at the end of the period are not necessarily equal to monetary funds at the beginning of the period plus net cash flow, because there is a time difference between the calculation of net cash flow and the recognition of monetary funds in terms of accounting treatment. Specifically, net cash flow is calculated based on the time when economic transactions actually occur, while monetary funds are recognized according to financial accounting cycles. As a result, net cash flow may occur earlier or later than the recognition of monetary funds in an accounting period, resulting in a difference in the value of ending monetary funds and opening monetary funds plus net cash flows.

For example, in an accounting period, the company received payment from customers for sales in the early stage, but due to some reasons (such as bank operation delays, reserve ratio adjustments, etc.), the payment arrived later than the end of the accounting period, and although the income has been incurred and included in the net cash flow, it has not yet been reflected in the monetary funds at the end of the period, resulting in the failure of the formula for the mu quarrel.