Accounting chap 7 review

Accounting chap 7 review - Chapter 7 review Show that you...

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Chapter 7 review Show that you understand the accounting for and disclosure of various types of investments that companies make. Typically, excess cash expected to last for short periods of time is invested in highly liquid financial instruments, such as CDs. Sometimes cash is also invested in securities of other corporations: o Equity securities—securities issued by corporations as a form of ownership in the business. o Debt securities—securities issued by a corporation as a form of borrowing. At times, a company may wish to purchase a relatively large portion of another firm’s stock to acquire influence over that firm. Show that you understand how to account for accounts receivable, including bad debts. Accounts receivable arise from sales on credit. Companies with many customers may keep detailed records of accounts receivable in a separate subsidiary ledger. Because not all customers pay their accounts receivable, an estimate of the accounts receivable less any doubtful accounts must be presented on the balance
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This test prep was uploaded on 04/09/2008 for the course ACC ? taught by Professor Tanzola during the Fall '08 term at Saint Joseph's University.

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Accounting chap 7 review - Chapter 7 review Show that you...

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