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Chap007 - Chapter 07 Cash and Receivables Chapter 7 Cash...

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Chapter 07 - Cash and Receivables 7-1 Chapter 7 Cash and Receivables Question 7-1 Cash equivalents usually include negotiable instruments as well as highly liquid investments that have a maturity date no longer than three months from date of purchase. Question 7-2 Internal control procedures involving accounting functions are intended to improve the accuracy and reliability of accounting information and to safeguard the company’s assets. The separation of duties means that employees involved in recordkeeping should not also have physical responsibility for assets. Question 7-5 Yes, IFRS and U.S. GAAP differ in how bank overdrafts are treated. Under IFRS, overdrafts can be offset against other cash accounts. Under U.S. GAAP overdrafts must be treated as liabilities. QUESTIONS FOR REVIEW OF KEY TOPICS
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