Podcast
Questions and Answers
What is the standard medium of exchange and the basis for measuring and accounting for all other items?
What is the standard medium of exchange and the basis for measuring and accounting for all other items?
Cash
How do companies generally classify cash on their balance sheets?
How do companies generally classify cash on their balance sheets?
As a current asset
What are some examples of negotiable instruments that are viewed as cash?
What are some examples of negotiable instruments that are viewed as cash?
Money orders, certified checks, cashier’s checks, personal checks, bank drafts
What are some temporary investments that are often mistakenly classified as cash?
What are some temporary investments that are often mistakenly classified as cash?
Why is internal control over cash imperative for companies?
Why is internal control over cash imperative for companies?
What are some examples of items that present classification problems when it comes to cash?
What are some examples of items that present classification problems when it comes to cash?
What are some ways of internal control over cash receipts?
What are some ways of internal control over cash receipts?
Why is it important to use a voucher system for payments?
Why is it important to use a voucher system for payments?
What are the main types of bank accounts mentioned in the text?
What are the main types of bank accounts mentioned in the text?
What distinguishes a saving account from a demand account?
What distinguishes a saving account from a demand account?
Why should payments be made by cheque/check rather than cash?
Why should payments be made by cheque/check rather than cash?
What role does a bank account play in internal cash controls?
What role does a bank account play in internal cash controls?
How should companies classify restricted deposits held as compensating balances against short-term borrowing arrangements in their financial statements?
How should companies classify restricted deposits held as compensating balances against short-term borrowing arrangements in their financial statements?
Where should companies classify restricted deposits held as compensating balances against long-term borrowing arrangements?
Where should companies classify restricted deposits held as compensating balances against long-term borrowing arrangements?
How should companies report bank overdrafts in their financial statements?
How should companies report bank overdrafts in their financial statements?
Under what circumstances are bank overdrafts included as a component of cash?
Under what circumstances are bank overdrafts included as a component of cash?
When should companies disclose compensating balance arrangements without cash use restrictions?
When should companies disclose compensating balance arrangements without cash use restrictions?
What should companies do if they have bank overdrafts that are material?
What should companies do if they have bank overdrafts that are material?
How do companies typically treat interest revenue related to accounts receivable?
How do companies typically treat interest revenue related to accounts receivable?
What is the classification criteria for receivables on the statement of financial position?
What is the classification criteria for receivables on the statement of financial position?
How do companies value and report short-term receivables?
How do companies value and report short-term receivables?
What is the purpose of recording credit losses as debits to Bad Debt Expense?
What is the purpose of recording credit losses as debits to Bad Debt Expense?
What are the two methods used in accounting for uncollectible accounts?
What are the two methods used in accounting for uncollectible accounts?
How does the direct write-off method handle uncollectible accounts?
How does the direct write-off method handle uncollectible accounts?
What is the journal entry to reverse the write-off of an account that was previously deemed uncollectible?
What is the journal entry to reverse the write-off of an account that was previously deemed uncollectible?
How does a company record the collection of an account that was previously written off as uncollectible?
How does a company record the collection of an account that was previously written off as uncollectible?
What is a note receivable supported by?
What is a note receivable supported by?
Define a negotiable instrument in the context of notes receivable.
Define a negotiable instrument in the context of notes receivable.
How does a company record the recovery of a bad debt?
How does a company record the recovery of a bad debt?
What entries are made when a company collects from a customer after writing off the account as uncollectible?
What entries are made when a company collects from a customer after writing off the account as uncollectible?
Flashcards
Cash
Cash
Standard medium of exchange and basis for accounting.
Current Asset
Current Asset
How companies typically classify cash on balance sheets.
Negotiable Instruments
Negotiable Instruments
Documents viewed as cash, like money orders or checks.
Temporary Investments
Temporary Investments
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Internal Control
Internal Control
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Classification Problems
Classification Problems
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Cash Receipts Control
Cash Receipts Control
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Voucher System
Voucher System
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Types of Bank Accounts
Types of Bank Accounts
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Savings vs. Demand Account
Savings vs. Demand Account
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Cheque vs. Cash Payments
Cheque vs. Cash Payments
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Bank Account Functions
Bank Account Functions
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Restricted Deposits Classification
Restricted Deposits Classification
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Long-term Deposit Classification
Long-term Deposit Classification
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Bank Overdraft Reporting
Bank Overdraft Reporting
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Bank Overdraft and Cash
Bank Overdraft and Cash
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Disclosing Compensating Balances
Disclosing Compensating Balances
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Material Bank Overdrafts Disclosure
Material Bank Overdrafts Disclosure
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Interest Revenue Treatment
Interest Revenue Treatment
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Receivables Classification
Receivables Classification
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Valuing Short-term Receivables
Valuing Short-term Receivables
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Bad Debt Expense
Bad Debt Expense
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Uncollectible Accounts Methods
Uncollectible Accounts Methods
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Direct Write-off Method
Direct Write-off Method
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Reversing Write-off Journal Entry
Reversing Write-off Journal Entry
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Collection of Previously Written Off Account
Collection of Previously Written Off Account
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Note Receivable Definition
Note Receivable Definition
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Negotiable Instrument Definition
Negotiable Instrument Definition
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Recovery of Bad Debt
Recovery of Bad Debt
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Collecting After Write-off
Collecting After Write-off
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