SMG AC 347 Chapter 7-9,18: AC347 midterm 2 study guide
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Examples: coin, currency, checking and savings accounts, money orders, certified ,(cid:272)ashier"s, a(cid:374)d perso(cid:374)al checks, bank drafts. Reporting cash: cash equivalents short-term, highly liquid investments that are both, readily converted into cash, and, so near their maturity that they present insignificant risk of changes in value. Compensating balances: bank overdrafts company writes a check for more than the amount in its cash account. Offset against cash accounts only when accounts are with the same bank. Receivables claims held against customers and other for money, goods, or services. Accounts receivable oral promises of the purchaser to pay for goods and services sold: recognition of ar. Revenue recognition principle: a company should recognize revenue when it satisfies its performance obligation by transferring the good or service to the customer. The transaction price is the amount of consideration that a company expects to receive from a customer in exchange for transferring goods or services.
