Management and Organizational Studies 3360A/B Chapter Notes - Chapter 7: Bank Reconciliation, Bank Statement, List Of The Shield Episodes
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It is a sale when risk and rewards have been transferred - ifrs: a trade of monetary value for an asset - aspe. Liquidity is an indication of an enterprise"s ability to meet its obligations as they come due. Restricted cash - restricted for a special purpose (ex. Retirement of bonds) and reported as either current or non-current depending on the date of availability of disbursement. Some certificates of deposit, money market funds, and treasury bills are nearly equivalent to cash in terms of liquidity. Receivables - claims held against customers and others for money, goods or services in the future: they are classified as trade or nontrade and as either current (realized within 1 year or the current operating cycle) or non-current. Credit risk - the likelihood of loss because of the failure of the other party to fully pay the amount owed: the most important indicator is the age of the outstanding account past its due date.