BUS 254 Lecture Notes - Accounts Receivable, Unit, Deferral

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 254
• Professor: Masood Kamlani

Document Summary

Liquid assets (cash, short-term investments, accounts and notes receivable) must be able to provide for a business to meet its short-term financial obligations. unit-of-measure assumption. Business activities measured in terms of common monetary unit (e. g. , canadian dollar) Foreign currency translation gains or losses internal controls and cash management. Identifies, explains and records difference between accounting records for cash account and the bank statement. Objective is to determine what the cash balance would be if same items are recorded in both the records for the company and the bank records. Marketable securities financial assets that are publicly traded and easily converted to cash (liquid assets) valuation methods for short-term investments. Lower of cost and market financial instruments (investments) Held for trading-valued at fair (market) value with gains or losses included in net income. Available for sale-valued at fair (market) value with gains or losses included in comprehensive income and transferred to net income when disposed of.