ADMS 2500 Lecture Notes - Lecture 5: Canadian Tire Money, Petty Cash, List Of The Shield Episodes

• School: York University
• Department: Administrative Studies
• Course: ADMS 2500
• Professor: Haiping Wang

Document Summary

Ap/adms 2500 lecture 5 cash and receivables. Profit does equate to cash if the cash basis of accounting is used. Cash is one of the most important assets to a company. But gaap in canada mandates accrual method of calculating profit. This accrual basis destroys the relationship with the underlying cash flows. Assume shekii fahel starts a new business. All sales are made on account means customers don"t have to pay until feb. Business has costs lie payroll, rent and payments to supplied of ,000 for jan (but all demand payment by jan. 31) Have to pay the employers ,000 but they don"t have it yet because they don"t get paid until feb: will have to re-negotiate from suppliers or, borrow money (bank, another company, etc. ) 3 major sources of cash for business: operations (selling product, financing, selling assets other than product.