accounting-ch.5,6,7 - The current assets of most companies...

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The current assets of most companies are usually made up of: -cash and assets expected to be converted to cash within a year. A cash equivalent is a current asset that: is readily convertible into cash with a minimal risk The principal reason for reconciling the cash balance per books with the balance shown on the bank  statement is to - determine the amount of cash in the account actually available to the entity. Internal control systems involve a series of checks and balances that separate each of the functional duties  involved in processing a transaction, and are normally designed to do all of the following except -Prevent groups of employees from committing collusive acts of fraud. Bad debt expense is recognized in the same accounting period as the revenue that is related to the  receivable because: -all costs incurred in the current period should be subtracted from current period revenues Which of the following is true regarding a note receivable? -A note receivable is a more formal document than an account receivable Inventories: are recorded as debits to assets when purchased and as debits to expenses when used When comparing its effects to LIFO during an inflationary time, the effects of FIFO are to
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This note was uploaded on 05/12/2010 for the course ACCT 201 taught by Professor Meyer during the Spring '10 term at University of Louisiana at Monroe.

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accounting-ch.5,6,7 - The current assets of most companies...

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