COMMERCE 3AB3 Chapter Notes - Chapter 7: Commercial Paper, Bank Statement, Accounts Payable
Document Summary
Understanding cash and accounts receivable: managing and controlling cash and accounts receivable are critical objectives for many companies, key concerns relating to management and control of cash include. Implementing appropriate internal controls, including regular bank reconciliations. Minimizing idle cash include: key concerns relating to management and control of accounts receivable. Implementing appropriate internal controls, including appropriate credit policies. Reporting of cash: restricted cash, cash in foreign currencies, bank overdrafts, cash equivalents. If the restricted cash balance is material, must be segregated from regular cash for reporting purposes: classified as current or non-current assets depending on date of availability or expected disbursement, note disclosure of restricted cash is required. Foreign currencies balance sheet date: amount held in foreign currencies is reported in canadian dollars at the, the exchange rate on the balance sheet date is used to translate foreign currencies into canadian dollars. If restrictions exist on the foreign funds, those funds are reported as restricted.