BUS 320 Lecture Notes - Lecture 3: List Of The Shield Episodes, Petty Cash, Bank Reconciliation

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 320
• Professor: Mahmoudian Fereshteh

Document Summary

Managing and controlling cash and accounts receivable are critical objectives for many companies. Key concerns relating the management and control of cash and accounts receivable. 1- implementing appropriate internal controls, including regular bank reconciliation. Accounts receivable: implementing appropriate internal controls including appropriate credit policies, speeding up the collection cycle. What is financial asset? ( cica handbook, part ii, section 3856) Cash is reported as a current asset if it is readily available to pay current obligations and is free of restrictions. Cash consists of 1) coins, 2) currency, 3) available funds on deposit at the bank, 4) petty cash, 5) money orders: certified cheques, 7) cashier"s cheques, 8) personal cheques, 9) bank drafts, and 10) usually savings accounts. Note: post dated cheques, travel advances , and stamps on hand are not classified as cash. Reporting cash need special attention in the case of the following: restricted cash, cash in foreign currencies, bank overdrafts, cash equivalents, restricted cash.