MAN 201 CHAPTER 6 V1 - 2017.pdf - 6 Current Assets I (Cash,...

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6Current Assets I(Cash, Banks,Accounts & NotesReceivable)©2017ÇankayaUniversity - MAN 201 Principles of Accounting IAssoc. Prof. CanÖZTÜRKTurkish GAAP
Current assetsassetsthatarecashorexpectedtobeconverted into cash or benefited within oneyear
AssetsLiabilitiesCurrent AssetsCurrent LiabilitiesBanks102.280Bank Loan15.210Accounts Receivable10.950Accounts Payable5.000Receivables from Owners3.000Payables to Employees2.500Materials Inventory2.000Unearned Revenues3.000Prepaid Expenses510Provision for Corporate Tax1.556Total Current Assets118.740Total Short-term Liabilities27.266Non-Current (Fixed) AssetsEquityFurniture and Fixtures15.000Capital100.000Accumulated Depreciation-250Period Net Income6.224Furniture and Fixtures, net14.750Total Equity106.224Total Non-Current Assets14.750Total Assets133.490Total Liabilities and Equity133.490Express Travel AgencyBalance Sheet(TL)31 January 2014
AssetsLiabilitiesCurrent AssetsCurrent LiabilitiesCash47.200Provision for Corporate Tax10.846Banks118.831VAT Payable21.281Deposits & Guarantees Extended45.000Total Short-Term Liabilities32.127Materials Inventory2.000Long-term LiabilitiesMerhandise Inventory73.000Prepaid Expenses25.250-VAT Deductible39.480Total Current Assets350.761Total Long-Term Liabilities-Building400.000EquityVehicle50.000Capital800.000Furniture & Fixtures80.000Period Net Income43.384Accumulated Depreciation-5.250Total Equity843.384Total Tangible Assets,net524.750Total Assets875.511Total Liabilities and Equity875.511ABA CompanyBalance Sheet31 March 20XX
Current assetsCash and Cash EquivalentsCashBanks (Bank Accounts)Cash EquivalentsShort-term Financial InvestmentsTrade ReceivablesAccounts ReceivableNotes ReceivableOther ReceivablesReceivables from employeesReceivables from ownersInventoryMaterials InventoryMerchandise InventoryOther Current AssetsValue Added TaxPrepaid Expenses and Accrued RevenuesPrepaid Taxes
Why is Current Asset ManagementImportant?solvencyprofitabilityprofitable but insolventquality of receivablescredit policiesidle cash
CashCoins and papermoneyCashcan bein local currency orthe local currencyequivalent of theforeign currency heldby the firm in itsvaults.
BanksBankscan becash in local currency or the localcurrency equivalent of the foreigncurrency held by the firm in its bankaccounts.
BanksTransactions from Bank AccountsDeposit money into bank account in local currencyPay money from bank account in local currencyDeposit check into bank account in local currencyPay check from bank account in local currencyDeposit money into bank account in foreign currencyPay money from bank account in foreign currencySave money in the time deposit accountBank reconciliation
BanksTypes of Bank AccountsDemand Deposit AccountTime Deposit Account
BanksCurrency of Bank AccountsLocal currencyTurkish LiraForeign currencyEuroUSDOthers
BanksThere are two bank accounts in a foreigncurrency transactionOne account will be opened and kept in the bankForeign Currency such as Euro or USDOther account will be kept in the accountingrecordsForeigncurrencyhastobeconvertedintolocalcurrency such as Turkish Lira

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