《西方财务会计》PPT课件

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1、CHAPTER5CASHANDITSCONTROLIntroduction(cont.)Cashisoneoffinancialassets.Financialassetsincludecash,short-terminvestmentsandreceivables.Financialassetsareshowninthebalancesheetattheircurrentvalues.Currentvalueismeasureddifferentlyforeachtypeoffinancialasset.CurrentvalueThecurrentvalu

2、eofcashissimplyitsfaceamount.Thecurrentvalueofshort-terminvestments(marketablesecurities)iscurrentmarketvalue.(representsanexceptiontothecostprinciple)ThecurrentvalueofaccountsreceivableisNetrealizablevalue.Introduction(cont.)keywords:(textbook)---adequatesupplyofcashto---makevarie

3、typayments---avoidcashshortagesduringbusinessexpansions---otherwisethebusinesshasrisksofinsolventandbankruptcy.---avoidskeepingexcessiveamountsonhandorinbanksbecausecashisanunproductiveassetunlessinvested.Whyshouldabusinesscontrolcash?(summaryoftextbook)Toensurethatsufficientcashis

4、availablewhenneededandthattoomuchcashisnotidle,managersmustplanandcontrolcarefullythecashneedsofthebusiness.Inaddition,becausecashisuniversallydesirable,agoodbusinessmustmaintaincarefulcontroloveritscashtoensurethatitisnotlostthroughfraudorembezzlement.DefinitionofCash(cont.)Cashco

5、nsistsofdemanddeposits,currency,coins,moneyorders,andchecksawaitingdeposit.Demanddepositsarebankcheckingaccounts.Savingaccountsarecalledtimedeposits.Timedepositsareusuallyconsideredcashalthoughtheyareinrealitytemporaryinvestments.DefinitionofCash(cont.)Thingsthataresometimesmistake

6、nlyviewedascashbutthatarenotcashincludepostagestamps,postdatedchecks,checksreturnedbythebankforlackofsufficientfunds,andIOUsofemployeesandofficersforsmallamountsborrowedfromthecompany.CashEquivalentsCombinedwithcashaccountintheB/S.Cashequivalentsincludesomeveryliquidshort-terminves

7、tmentsCashequivalentsareverysafe,haveverystablemarketvalue,andmaturewithin90daysofthedateofacquisition.CashcontrollingCashreceiptsCashpaymentsCashbalanceControllingCashReceipts1.Allreceiptsshouldbebankedpromptly.2.Receiptsfromcashsalesshouldbesupportedbysalestickets,cashregistertap

8、es,andsoon.3.Accountabilit