Ch2- The Balance Sheet-2

Ch2- The Balance Sheet-2 - _____-____ _____________ Are...

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Assets Generally presented in order of _________ Common Balance Sheet Accounts/Groupings __________ Assets Cash and Marketable Securities Accounts Receivable Inventories Prepaid Expenses ________-______ Assets Property, Plant, and Equipment Other Assets 2-2
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A Few Definitions _________ ______ - Cash or other assets expected to be converted into cash within one year or one operating cycle, whichever is longer ___________ ______ - Time required to purchase or manufacture inventory, sell the product, and collect the cash 2-3
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Cash and Marketable Securities Two accounts are often combined as “______ and ______ _____________” Cash in any form—cash awaiting deposit or in a bank account Generally includes currency, coin, balances in checking and other demand or “near demand” accounts 2-4 Cash
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Cash and Marketable Securities (cont.) Also called “
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Unformatted text preview: _____-____ _____________ Are cash ______________ Represent cash _____ needed immediately in the business Temporarily invested to earn a return Have short-term maturities May include T-bills, certificates, notes, bonds, CDs and commercial paper 2-5 Marketable Securities Accounts Receivable Arise from ______ transactions to customers on _______ Reported on the balance sheet at NET REALIZABLE VALUE 2-6- Allowance for ________ ________ ____ _________ _____ = Accounts Receivable A Word on the __________ Management must __________ the dollar amount of accounts receivable they expect to be uncollectible Affects ________ _____ valuation AND bad debt expense on _______ ________ Can be important in assessing earnings quality--changes should be analyzed 2-7...
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Ch2- The Balance Sheet-2 - _____-____ _____________ Are...

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