{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

PorterSMCh06Final - CHAPTER 6 Cash and Internal Control...

Info icon This preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
CHAPTER 6 Cash and Internal Control OVERVIEW OF EXERCISES, PROBLEMS, AND CASES Estimated Time in Learning Outcomes Exercises Minutes Level 1. Identify and describe the various forms of cash reported 1 10 Easy on a balance sheet. 6* 15 Mod 2. Show that you understand various techniques that 2 10 Easy companies use to control cash. 3 10 Easy 6* 15 Mod 3. Explain the importance of internal control to a business and the significance of the Sarbanes-Oxley Act of 2002. 4. Describe the basic internal control procedures. 4 20 Mod 5 15 Mod 5. Describe the various documents used in recording purchases and their role in controlling cash disbursements. *Exercise, problem, or case covers two or more learning outcomes Level = Difficulty levels: Easy; Moderate (Mod); Difficult (Diff) 6-1
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
6-2 FINANCIAL ACCOUNTING SOLUTIONS MANUAL Problems Estimated and Time in Learning Outcomes Alternates Minutes Level 1. Identify and describe the various forms of cash reported 4* 20 Mod on a balance sheet. 2. Show that you understand various techniques that 1 25 Mod companies use to control cash. 4* 20 Mod 3. Explain the importance of internal control to a business and the significance of the Sarbanes-Oxley Act of 2002. 5* 20 Mod 4. Describe the basic internal control procedures. 2 20 Mod 5* 20 Mod 5. Describe the various documents used in recording purchases and their role in controlling cash disbursements 3 25 Diff *Exercise, problem, or case covers two or more learning outcomes Level = Difficulty levels: Easy; Moderate (Mod); Difficult (Diff)
Image of page 2
CHAPTER 6 • CASH AND INTERNAL CONTROL 6-3 Estimated Time in Learning Outcomes Cases Minutes Level 1. Identify and describe the various forms of cash reported 1 20 Mod on a balance sheet. 3 30 Mod 2. Show that you understand various techniques that companies use to control cash. 3. Explain the importance of internal control to a business and the 2 25 Mod significance of the Sarbanes-Oxley Act of 2002. 4* 30 Mod 4. Describe the basic internal control procedures. 4* 30 Mod 5. Describe the various documents used in recording purchases and their role in controlling cash disbursements *Exercise, problem, or case covers two or more learning outcomes Level = Difficulty levels: Easy; Moderate (Mod); Difficult (Diff)
Image of page 3

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
6-4 FINANCIAL ACCOUNTING SOLUTIONS MANUAL Q U E S T I O N S 1. A cash equivalent is an investment that is readily convertible to a known amount of cash and has an original maturity to the investor of three months or less. It is in- cluded with cash on the balance sheet because the risk of a material loss on it is small. Unlike other types of investments, such as those in stocks and bonds of other companies, the company holding a cash equivalent knows exactly how much cash will be received when it matures. 2. A cash equivalent is convertible to a known amount of cash. Therefore, the purchase of a cash equivalent is not considered a significant investing activity to be reported on the statement of cash flows. Cash equivalents are included with cash on the bal- ance sheet, and thus the company is merely trading one cash item for another when it writes a check and uses the proceeds to invest in a cash equivalent.
Image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern