行脚Chapter7financial astsembassy
第63届艾美奖
Define financial asts and explain their valuation in the balance sheet.
Financial asts are cash and other asts that convert directly into known amounts of cash.The three basic categories are cash,marketable curities,and receivables.In the balance sheet, financial asts are listed at their current value.For cash,this means the face amount;for marketable curities,current market value;and for receivables,net realizable value. Marketable curities入党转正发言
人的生命是有限的可是为人民服务
Cash
lady gaga资料Cash equivalents:very short-term investments that are so liquid that they are considered equivalent to cash.Examples include money market funds,U.S treasury bills,certificates of deposits,and commercial paper.The investments must mature within90days of acquisition. Compensating balance:a minimum average balance that a bank may require a borrower to leave on deposit in a non-interest bearing account.
Line of credit:a prearranged borrowing agreement in which a bank stands ready to advance the borrow
er without delay any amount up to a specified credit limit.Once ud,a line of credit becomes a liability.The unud portion of the line reprents the ability to borrow cash without delay
Describe the objectives of cash management and internal control over cash.
12999The objectives of cash management are accurate accounting for cash transactions,the prevention of loss through theft or fraud,and maintaining adequate-but not excessive-cash balance.The major steps in achieving internal control over cash transactions are as follows(1) parate cash handling from the accounting function,(2)prepare departmental cash budgets(3) prepare a control listing of all cash received through the mail and from over-the-counter cash sales(4)deposit all cash receipts in the bank daily,(5)make all payment by check,(6)verified every expenditure before issuing a check in payment,and(7)promptly reconcile bank statements. Bank reconciliation:an analysis that explain the difference between the balance of cash shown in the bank statement and the balance of cash shown in the depositor’s records.
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Accounting for marketable curities
Purcha of marketable curities
Debit:marketable curities
Credit:cash
Recognition of investment revenue
Debit:cash
Credit:dividend revenue
Sale of marketable curities(gain/loss)
英语教育格言Debit:cash
Credit:marketable curities
Gain on sale of investments
Adjusting marketable curities to market value
Securities classified as available for sale are prented in the balance sheet at their current market value as of the balance sheet date.Hence,this valuation principle is often called mark-to-market.This adjustment of marketable curities to their current market value requires the u of an account entitled unrealized holding gain on investments.
Unrealized holding gain(or loss)on investment:a stockholders’equity account reprenting the difference between the cost of investments owned and their market value at the balance sheet date.In short,gains that have not been realized through the sale of the curities. Accounts receivable
Allowance for doubtful accounts:a valuation account or contra-ast account relating to accounts receivable and showing the portion of the receivables estimated to be uncollectible. Net realizable value:the balance sheet standard applied to receivables.Equal to the gross amount of accounts and notes receivable,less an estimate of the portion that may prove to be uncollectible.
Account for uncollectible receivables using the allowance and direct write-off methods.
Under the allowance method,the portion of each period’s credit sales expected to prove uncollectible is estimated.This estimate amount is recorded by a debit to the uncollectible accounts expen account and a credit to the contra-ast account allowance for doubtful accounts.When specific accounts are determined to be uncollectible,they are written off by debiting allowance for doubtful accounts and crediting accounts receivable.
Under the direct write off method,uncollectible accounts are charged to expen in the period that they are determined to be worthless.
The allowance method is theoretically preferable becau it is bad on the matching principle. However,only the direct write-off method may be ud in income-tax returns.
Financial analysis and decision making郑州英语翻译
This accounts receivable turnover rate tells us how many times the company’s average investment in receivables was converted into cash during the year.The ratio is computed by dividing annual net sales by average accounts receivable.The higher the turnover rate,the more liquid the company’s receivables.Dividing365days by the turnover rate provides an estimate of the average number of days an account receivable remains outstanding before it is collected. High turnover rates result in s
horter collection periods than low turnover rates.
