Cash and Receivables.ppt

Learning objectives LO1: Cash and cash equivalents LO2: Accounting receivable the gross and net methods for cash discounts treatment for sales return treatment for uncollectible accounts receivable financing with receivables: secured borrowing sale of receivable with (without) recourse LO3: notes receivable Interest-Bearing Notes Noninterest-Bearing Notes Discounting LO4: Bank reconciliation Reference 第二章 货币资金 第三章 应收和预付款项 应收票据 应收账款 应收债权出售和融资 Keywords 1 Cash and Cash Equivalents 现金及现金等价物 Coins and currency 流通货币(硬币和纸币) Checking accounts 活期存款账户 Savings accounts 定期存款账户 Bank drafts 银行汇票 Bank overdrafts 银行透支 Check 支票 Treasury bills 短期国库券 Commercial paper 商业本票 Internal Control 内部控制 Restricted Cash 限制用途的现金 Compensating Balance 最低存款余额 trade discounts 商业折扣 Cash discounts 现金折扣 Gross Method 总价法 Net Method 净价法 Cash Equivalents Maturity date is no longer than 3 months from the date of purchase. Example 1 The following items appeared on the year-end trial balance of Consolidated Freight Corporation: cash in a checking account, U.S. Treasury bills that mature in six months, Deposit account, cash in a savings account, currency and coins. Which of these items would be included in the company’s balance sheet as cash and cash equivalents? Answer All of these items would be included as cash and cash equivalents except the U.S. Treasury bills, which would be included in the current asset section of the balance sheet as investments. Example 2 Delta Automotive Corporation has the following assets listed in its 12/31/11 trial balance: Cash in bank-checking account $22,500 U.S. Treasury bills (mature in 60 days) 5,000 Cash on hand (currency and coins) 1,350 U.S. Treasury bills (mature in six months) 10,000 deposit account 1,840