tailieunhanh - Intermediate Accounting - Chap007

Restricted cash is cash that has been set aside for a particular use and is not available for paying current liabilities. Restricted cash is not a current asset, rather it is classified as an investment on the balance sheet. A compensating balance is some specified minimum amount that must be maintained on deposit with a bank that has made a loan to the company. | Cash and Receivables 7 Insert Book Cover Picture Chapter 7: Cash and Receivables Cash Amounts on deposit with financial institutions Coins and currency Petty cash Cashier’s checks Certified checks Money orders Cash includes currency, coins, amounts on deposit with banks in checking accounts and savings accounts, and items ready for deposit such as checks and money orders received from customers. Cash Equivalents Items very near cash but not in negotiable form Money market funds Treasury bills Commercial paper Cash equivalents include short-term, highly liquid investments that are: Easily converted into a known amount of cash. Close to maturity. Not sensitive to interest rate changes. Examples are money market funds, treasury bills, and commercial paper. Learning Objectives Define what is meant by internal control and describe some key elements of an internal control system for cash receipts and disbursements. LO1 Our first learning objective in Chapter 7 is to define . | Cash and Receivables 7 Insert Book Cover Picture Chapter 7: Cash and Receivables Cash Amounts on deposit with financial institutions Coins and currency Petty cash Cashier’s checks Certified checks Money orders Cash includes currency, coins, amounts on deposit with banks in checking accounts and savings accounts, and items ready for deposit such as checks and money orders received from customers. Cash Equivalents Items very near cash but not in negotiable form Money market funds Treasury bills Commercial paper Cash equivalents include short-term, highly liquid investments that are: Easily converted into a known amount of cash. Close to maturity. Not sensitive to interest rate changes. Examples are money market funds, treasury bills, and commercial paper. Learning Objectives Define what is meant by internal control and describe some key elements of an internal control system for cash receipts and disbursements. LO1 Our first learning objective in Chapter 7 is to define what is meant by internal control and describe some key elements of an internal control system for cash receipts and disbursements. Internal Control of Cash Encourages adherence to company policies and procedures Promotes operational efficiency Minimizes errors and theft Enhances the reliability and accuracy of accounting data An internal control system is the company’s plan that encourages adherence to company policies and procedures, promotes operational efficiency, minimizes errors and theft, and enhances the reliability and accuracy of accounting data. Control of Cash Receipts Separate responsibility for handling cash, recording cash transactions, and reconciling cash balances. Agreed cash amounts deposited with cash amounts received. Close supervision of cash-handling and cash-recording activities. Because cash is easily susceptible to theft, internal controls over cash are extremely important. Separation of duties is essential when dealing with cash. Different people .

• Kế toán - Kiểm toán
• Intermediate Accounting
• Balance Sheet
• Income Statement
• Cash Flows
• Economic Environment
• Financial Reporting
• Accrual Accounting
• Lecture Intermediate accounting
• Financial Accounting
• Accounting process
• Accounting equation
• Accounting processing cycle
• Stock issuance
• Estimating reserves
• Liquidating dividends
• Accounting changes
• Error corrections
• Accounting choices
• Theoretical structure
• Financial accounting environment
• Accounting for leases
• Leasing environment
• Accounting by lessee
• Special accounting problems
• Cash versus accrual accounting
• International standard setting
• Accounting standards
• Accounting assists
• The challenges facing accounting
• Income taxes
• Accounting for income taxes
• Deferred tax liabilities
• Error analysis
• Accounting policy
• Accounting estimate
• Accounting policies
• Accounting information system
• Measurement issues
• Characteristics of accounting
• Capital allocation process