Chapter 6 - cash, receivables and the time value of money. Includes near cash items,(treasury bills, guaranteed investment certificates (gics), money market funds) Deflation: a period when on average, prices, in the economy are falling - Inflation: a period when, on average, prices in the economy are rising reduces the purchasing power of cash. Effective cash management is an important stewardship responsibility and key function of management having adequate cash resources available to support business operations safeguarding this critical asset / resource (segregation of duties, regular bank reconciliation, and security procedure) Internal control: ensure an entity achieves its objectives. Chequing accounts pay no interest invest into (safe) productive uses. Segregation of duties: ensuring that people who handle an asset are not also responsible for record keeping for that asset. : difference between an entity"s accounting records and its bank. > investment, spend/enjoy , inflation, later= likelihood of not getting paid known as the time value of money.