Instructor%20Notes%20-%20Chapter%205

Instructor%20Notes%20-%20Chapter%205 - Management 200T...

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Management 200T Accounting for and Presentation of Current Assets Chapter 5 Cash and Cash Equivalents Cash Money on hand in change funds Petty Cash Undeposited receipts Funds immediately available to the firm in its ban accounts Cash Equivalents – short-term investments readily convertible into cash with a minimal risk of price change due to interest rate movements. Generally, maturities of less than three months. The Bank Reconciliation as a Control over Cash Two reasons that account balance of company and account balance of bank may differ: Timing Differences o Deposits in transit o Outstanding Checks o Bank Service Charges and Interest Income o NSF (not sufficient funds) check Errors
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Management 200T Accounting for and Presentation of Current Assets Chapter 5 Short-Term Marketable Securities Securities with maturities of greater than three months but less than one year. Interest Accrual
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This note was uploaded on 04/18/2008 for the course MGMT 200T taught by Professor Purdum during the Fall '08 term at Purdue University-West Lafayette.

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Instructor%20Notes%20-%20Chapter%205 - Management 200T...

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