BU127 Chapter 7: BU127 Chapter 7 Notes
6
BU127 Full Course Notes
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Classifying receivables: non trade receivables: loans to help employees pay for a home, trade receivables: are open accounts owed to the business by trade customers, account receivable: is a sale of products and services on open account to customers or when a company expects to receive payments, notes receivable: are written promises that require another part to pay the business under specific conditions. Control over trade receivables sales and collection functions: require approval of customers" credit history by a person independent of the, cash: is money or any instrument that banks will accept for deposit and immediate credit to the company"s account such as a cheque, money order or bank draft, cash equivalents: are short term, highly liquid investments that are readily convertible to known amounts of cash and which amounts of cash and which are subject to an insignificant risk of change in value.
