中级财务会计英文ch04.ppt

Cash and Receivables Chapter 4 Learning Objectives Identify items considered as cash. Indicate how to report cash and related items. Define receivables and identify the different types of receivables. Explain accounting issues related to recognition of accounts receivable. Explain accounting issues related to valuation of accounts receivable. Explain accounting issues related to recognition of notes receivable. Explain accounting issues related to valuation of notes receivable. Explain accounting issues related to disposition of accounts and notes receivable. Describe how to report and analyze receivables. Cash includes: Balances on deposit with financial institutions Coins and currency Petty cash Certain negotiable instruments Cashier’s checks Certified checks Money orders Items that are not cash Postdated checks Travel advances to employees Postage stamps Receivables from company employees Cash advances to employees or outside parties Overdraft Negative bank account balance reported as a current liability. Compensating balance Minimum balance that must be maintained in a company’s account as support for funds borrowed from the bank. Policies and procedures designed to: Protect assets. Ensure compliance with laws and company policies. Provide accurate accounting records. Evaluate performance. Separate custody of and accounting for cash. Maintain only the minimum cash balance needed. Provide for periodic test counts of cash balances. Permit reconciliation of ledger and bank cash account balances. Result in the physical control of cash. Separate responsibility for handling cash, recording cash transactions, and reconciling cash balances. Cash-handling and cash-recording activities assigned to different people. Close supervision of cash-handling and cash-recording activities. Separate responsibilities for: Cash disbursement documents, Check writing, Check signing, Check mailing, and Record keeping. Adequate source documents must sup