Practice Activity 9.24 Cash receipts and payments on customers’ behalf which do not reflect those of

Give examples of cash receipts and payments on behalf of customers that reflect the customer's activities and not those of the entity.

See the suggested answers to practice activity 9.24 here.

Suggested answers to practice activity 9.24

Examples of cash flows on customers' behalf that reflect the activities of the customer and not those of the entity include:

i. Receipt of demand deposits from bank customers;

ii. Repayment of demand deposits by a bank to its customers;

iii.Receipt of funds from customers by investment entities; and

iv. Receipt of rent on behalf of owners of properties.