6 Cash and Receivables ntermediate Accounting Accounting School. Zhongnan
6 Cash and Receivables Accounting School ·Zhongnan University of Economics & Law ntermediate Accounting I 中级会计学
Intermediate Accounting 6 Cash and Receivables 1. Accounting for cash Cash is the resources on hand to meet Planned expenditures pl and emergency situations
1. Accounting for cash Intermediate Accounting 6 Cash and Receivables Cash is the resources on hand to meet planned expenditures and emergency situations
Intermediate Accounting 6 Cash and Receivables Components of Cash vs, non-components Cash Included in cash Excluded from Cash · Coins and currency Certificates of deposit Checking accounts Bank overdrafts Savings accounts Postdated checks Negotiable checks Travel advances · Bank drafts · Postage stamps
Components of Cash vs. non-components Intermediate Accounting 6 Cash and Receivables Cash Included in Cash Excluded from Cash • Coins and currency • Checking accounts • Savings accounts • Negotiable checks • Bank drafts • Certificates of deposit • Bank overdrafts • Postdated checks • Travel advances • Postage stamps
Intermediate Accounting 6 Cash and Receivables Cash and Cash Equivalents Many companies report investments in very short-term, interest-earning securities as cash equivalents in the balance sheet
Cash and Cash Equivalents Many companies report investments in very short-term, interest-earning securities as cash equivalents in the balance sheet. Intermediate Accounting 6 Cash and Receivables
Intermediate Accounting 6 Cash and Receivables Cash Management Control Over receipts Immediately count the receipts(by the person opening the mail or the sales person using the cash register) Record daily all cash receipts in the accounting records Deposit daily all receipts in the companys bank account
Cash Management Intermediate Accounting 6 Cash and Receivables Control Over Receipts ➢ Immediately count the receipts (by the person opening the mail or the sales person using the cash register). ➢ Record daily all cash receipts in the accounting records. ➢ Deposit daily all receipts in the company’s bank account