BUS 251 Lecture 8: Chapter Six: Cash and Accounts Receivables

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 251
• Professor: Anne Mac Donald

Document Summary

Policies and procedures to ensure: the protection of assets from theft, loss, or inappropriate use, the reliability of the accounting information system. Usually listed first under current assets: may be a negative (credit) balance known as bank overdraft/line or credit, which is included in current liabilities, ma(cid:455) i(cid:374)(cid:272)lude (cid:862)(cid:272)ash e(cid:395)ui(cid:448)ale(cid:374)ts(cid:863) If the(cid:396)e"s a restricted use of cash, then it must be explained in the notes of the balance sheet. A(cid:373)ou(cid:374)ts o(cid:449)ed to a (cid:272)o(cid:373)pa(cid:374)(cid:455) f(cid:396)o(cid:373) (cid:272)(cid:396)edit sales to (cid:272)usto(cid:373)e(cid:396)s of the (cid:272)o(cid:373)pa(cid:374)(cid:455)"s normal business transactions. Ifrs gaap: (cid:862)a/r a(cid:396)e (cid:448)alued at the g(cid:396)oss a(cid:373)ou(cid:374)ts legall(cid:455) o(cid:449)ed to the (cid:272)o(cid:373)pa(cid:374)(cid:455) less allowances for uncertainties(cid:863) Uncertainties about cash collection affect both the income statement and the balance sheet. Afda changes for two reasons throughout the year. This e(cid:374)t(cid:396)(cid:455) is a ge(cid:374)e(cid:396)al p(cid:396)o(cid:448)isio(cid:374) that sho(cid:449)s that (cid:449)e do(cid:374)"t k(cid:374)o(cid:449) e(cid:454)actly who. Cr allowance for doubtful accounts (afda) (xa) the bad customers are, but we expect there are some that exist: second journal entry: