MGT120H5 Lecture Notes - Lecture 5: Celestica, Mccain Foods, Market Liquidity
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MGT120H5 Full Course Notes
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Learning objective 1: account for short term investments. Celestica fiscal year ends on dec 31, and investment in mccain has a current market value of 102,000 on this date. Gain because the market value (,000) = greater than celestica"s investment cost. Unrealized gain: because celestica has not yet sold the investment. Income statement: temporary asset can either earn interest revenue or dividend revenue. All gains and losses are also reported on the income statement. If celestica investment in mccain shares had decreased in value to 95000. Unrealized loss: because celestica has not yet sold the investment: unrealized loss on investments 5000. Receivables are the 3rd most liquid assets after cash and short term investments. Results from selling g/s on credit and by lending money. Accounts receivable are a current asset on the balance sheet. Learning objective 3: apply internal controls to receivables. Businesses that sell on credit receive most of their cash receipts by mail.
