US G.A.A.P.: bank's demand deposits are NOT an IOU

US G.A.A.P.: bank's demand deposits are NOT an IOU


GAAP ASC 305: CASH AND CASH EQUIVALENTS

GAAP ASC 305-10-55-1 :
https://law.resource.org/pub/us/code/bean/fasb.pdf/fasb.305.2011.pdf

Cash on deposit at a financial institution shall be considered by the depositor as cash rather than as an amount owed to the depositor.



GAAP ASC 942: FINANCIAL SERVICES - DEPOSITING AND LENDING

GAAP ASC 942-230-20 Glossary
https://law.resource.org/pub/us/code/bean/fasb.html/fasb.942.2011.html

Cash

Consistent with common usage, cash includes not only currency on hand but demand deposits with banks or other financial institutions. Cash also includes other kinds of accounts that have the general characteristics of demand deposits in that the customer may deposit additional funds at any time and also effectively may withdraw funds at any time without prior notice or penalty. All charges and credits to those accounts are cash receipts or payments to both the entity owning the account and the bank holding it. For example, a bank’s granting of a loan by crediting the proceeds to a customer’s demand deposit account is a cash payment by the bank and a cash receipt of the customer when the entry is made.