ACTG 2010 Chapter Notes - Chapter 6: Quick Ratio, Income Statement, Money Market Fund
Document Summary
Includes near cash equivalents (short term investments must mature within 3 months: treasury bills, guaranteed investment certificates, commercial paper, money market funds. Above: excludes common and preferred shares because their prices fluctuate daily. Is disclosed separately because it can be used in the day to day running of the business. Entity"s cash is restricted because it must be used in a certain way. Not included in the cash and cash equivalents in the cash flow statement. No adjustment is made to account for changes in prices such as inflation. Ifrs requires adjustments for entities in countries with high levels of inflation. (cid:1857)(cid:1876)(cid:1855)h(cid:1853)(cid:1866)(cid:1859)(cid:1857) (cid:1870)(cid:1853)(cid:1872)(cid:1857) (cid:1876) (cid:1853)(cid:1865)(cid:1867)(cid:1873)(cid:1866)(cid:1872) (cid:1867)(cid:1858) (cid:1858)(cid:1867)(cid:1870)(cid:1857)(cid:1859)(cid:1866) (cid:1855)(cid:1873)(cid:1870)(cid:1870)(cid:1857)(cid:1866)(cid:1855)(cid:1877) If exchange rate changes, the number of dollars reported changes. Having too much cash is bad, it"s an unproductive asset it doesn"t make more money. Internal controls: protect entity from loss, theft or inappropriate use.
