02 - Cash and receivables-s

Chapter 2

Cash and Receivables

Slide 2-1

College of Economic and Management , IMAU

Learning Objects

Understand and grasp the internal controls of Cash and Bank Grasp how to make Bank Reconciliations Master the methods of dealing with the Doubtful Accounts Master how to record assignment of Receivables

Slide 2-2

College of Economic and Management , IMAU

Cash and ReceivablesCashWhat is cash?

ReceivablesRecognition of accounts receivable Valuation of accounts receivable Recognition of notes receivable Valuation of notes receivable Disposition of accounts and notes receivableCollege of Economic and Management , IMAU

Management and control of cash Reporting cash Summary of cash-related items

Slide 2-3

Cash

Cash is the most liquid asset owned by a firm.

货币资金是指可以立即投入流通，用以购买商 品或劳务，或用以偿还债务的交换媒介物。 As a result it is most susceptible to theft, and thus internal control over cash is important.

Characteristics The standard medium of exchange (支付中介) Basis for measuring and accounting for all items(计量基础)

Current asset

Slide 2-4

College of Economic and Management , IMAU

Cash contents

Coin, currency Available funds on deposit at the bank(可动用的银行存款)

Negotiable instruments(可流通的票据)

Money orders (汇票), certified checks (承兑支 票), cashier’s checks (银行本票), personal checks (个人支票), and bank drafts (银行汇票) Saving accounts(定期存款)

Slide 2-5

College of Economic and Management , IMAU

Internal controls for cash(1/2)

内部控制制度是企业重要的内部管理制度，指处 理各种业务活动时，依照分工负责的原则在有关 人员之间建立的相互联系、相互制约的管理体系。 货币资金的内部控制制度是企业最重要的内部控 制制度，它要求货币资金收支与记录的岗位分离、 收支凭证经过有效复核或核准、收支及时入账且 收支分开处理、建立严密的清查和核对制度、做 到账实相符、制定严格的现金管理及检查制度等。

Slide 2-6

College of Economic and Management , IMAU

Internal controls for cash (2/2)

Management and control of cash(日常控制)

Segregate custody of cash from accounting for cash(职能分离)

Account for all cash transaction Cash payment by check Petty cash(备用金制度) Provide for periodic test counts of cash(现金清查)

Reconcile general ledger and bank account balances(银行存款余额调节表) Ensure that idle cash is invested to earn a returnCollege of Economic and Management , IMAU

Slide 2-7

Reporting Cash (1/3)p138

Restricted Cash(指定用途的现金)

Companies segregate restricted cash from “regular” cash for reporting purposes. Example: petty

cash, special payroll (compensating balances), dividend bank account.Reporting

Reporting as“ cash and cash equivalents ”separately if it will be disbursed within one year or the operating cycle, whichever is longer. Otherwise, the amount should be shown as a noncurrent asset.

Special payroll for plant expansion, retirement of longterm debt,College of Economic and Management , IMAU

Slide 2-8

Reporting Cash (2/3)

Bank Overdrafts(透支)

It occurs when cheques are written for more than the amount in the cash account. Reporting

Generally reported as a current liability.

Generally should add into accounts payable.

Offset against cash account only when available cash is present in another account in the same bank on which the overdraft occurred.

Slide 2-9

College of Economic and Management , IMAU

Reporting Cash (3/3)

Cash equivalents

Short-term, highly liquid investments that are both readily convertible to cash, and so near their maturity that they present insignificant risk of changes in value. Example: Treasury bills (国库券), Commercial paper(商业票据), and Money market funds(货 币基金).

Slide 2-10

College of Economic and Management , IMAU

Bank Reconciliations (1/4)

Bank reconciliations(银行存款余额调节表) are prepared and reviewed on a regular basis to ensure that:

Errors in the cash account are detected All cash transactions are recorded (e.g. adjustments such as bank service charges)

Bank and book balances agree

Slide 2-11

College of Economic and Management , IMAU

Bank Reconciliations (2/4)

The reconciliation of bank and book balances is to corrected cash balance.

企业银行存款的账面余额应定期与其开户银行转 来的对账单进行核对，若出现不符，则应通过编 制“银行存款余额调节表”调节相符。

The corrected cash balance is the amount that should be shown on the balance sheet at the reconciliation date.

Slide 2-12

College of Economic and Management , IMAU

Bank Reconciliations (3/4)

Two accounts balance rarely agree at any one point in time due to

Deposits in transit 未达账项 Outstanding cheque (转账支票) Bank charges Bank Credits (往来账户)

Collections or deposits in the company’s account that the company is not aware of until receipt of the bank statement.

Bank or depositor errors The items in red will require adjustment (for errors only if the error is the depositor’s error)College of Economic and Management , IMAU

Slide 2-13

Bank Reconciliations (4/4)Bank reconciliation银行对账单余额 加: 企业已收银行未收 减: 企业已付银行未付 调节 …… 此处隐藏：4017字，全部文档内容请下载后查看。喜欢就下载吧 ……