ACCT10002 Lecture Notes - Lecture 5: Cash Cash, Market Liquidity, Accounting Information System
Document Summary
Model underlying all computer accounting packages is based on manual double-entry accounting system. Manual accounting system: each of steps in accounting cycle is performed by hand. Integrated accounting systems: made up of subsystems (modules) in fully integrated accounting system, when data are entered into one module, the computer automatically updates info in other relevant modules. Myob accountright plus: enter business details, service vs retail vs merchandising business different chart of accounts. Cash typically most common asset and basis for measuring/accounting for all business transactions: most liquid asset, easily transferred receivables closely linked to cash; generally regarded as highly liquid assets. Cash: includes cash on hand, cash at bank and cash equivalents. Cash equivalents: highly liquid investments such as overdrafts, deposits. Electronic funds transfer: money is transferred almost instantaneously from one location to another via internet. Petty cash fund: a cash fund used to pay relatively small amounts.
