AFM101 Chapter Notes - Chapter 4: Accrued Interest, Annual Percentage Rate, Deferral

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM101
• Professor: Sasan Saiy

Document Summary

Shows the account"s beginning and ending balances, cash receipts, payments, and efts. Online banking: allows you to pay your bills and view your account electronically at anytime, you can reconcile transactions any time and keep your account current whenever you wish. Types of receivables: receivables monetary claims against others, third most liquid asset after cash and short-term investments, acquired mainly from selling foods and services on account or lending money. Performing a service on account lending money on a note receivable. Performed a service on account: accounts receivable. Includes loans to employees and subsidiary companies: can be reported in the other assets account, receivables are reported as operating activities on the statement of cash flows and current assets on the balance sheet. Amounts (allowance for doubtful accounts or allowance for bad debts: contra account for accounts receivable, eliminates the problem of having to reduce account receivable since bad debt is what the company does not expect to collect.