Chapter 7 Financial Assetslecture 1

Chapter 7 Financial Assetslecture 1 - Lecture1 ....

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Chapter7 Financial Assets Lecture 1 I call this the miscellaneous chapter.  There are a series of topics covered that  closely relate to or involve cash. Financial assets are a company’s most liquid resources. Financial assets  describe not just cash but also those assets easily and directly convertible into  known amounts of cash.   These assets include cash, short-term investments,  and receivables.  Financial assets are shown on the balance sheet at their current values.  After  drilling the cost principle into your heads, I am going to give you your first  exception to the cost (or historical value) principle.  Short-term investments also  called as marketable securities are shown on the balance sheet at their current  market values.  Later we will discuss how to make the journal entries necessary  to accomplish this. Accounts receivable have a stated face amount, but as you can guess not all 
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This note was uploaded on 02/10/2011 for the course ACCOUNTING 201 taught by Professor Notsure during the Spring '11 term at Edmonds Community College.

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Chapter 7 Financial Assetslecture 1 - Lecture1 ....

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