RSM220H1 Chapter Notes - Chapter 7: Money Market Fund, Accounts Receivable, Current Asset
Document Summary
Chapter 7, the first of six asset chapters, covers cash, accounts receivable, and notes receivable. Temporary investments (marketable securities) are discussed later in. This chapter can be covered in two class sessions. With the exception of transfers of receivables with and without recourse, students should have had previous exposure to the chapter concepts in an elementary accounting course. The following lecture outline is appropriate for this chapter: cash and receivables represent two of the most liquid of assets. Liquidity is an indication of an enterprise"s ability to meet its obligations as they come due: cash. Includes coin, currency, bank deposits including checking and savings accounts, and negotiable instruments such as money orders, cashiers" checks, personal checks, and bank drafts: postdated checks and i. o. u. s should be reported as receivables. Travel advances to employees should be reported as receivables or as prepaid expenses. Postage stamps on hand should be reported as office supplies or as prepaid expenses.
