ACC 311 Chapter Notes - Chapter 7: Money Market Fund, Petty Cash, Accounts Payable

• School: University of Miami
• Department: Accounting Business Administration
• Course: ACC 311
• Professor: andrewmcmartin

Document Summary

Petty cash funds and change funds are used to meet current operating expenses and liquidate current liabilities, so they"re included in current assets as. Accounts receivables, note receivables, non-trade receivables (advances to officers/employees, subsidiaries; deposits paid to cover potential losses; dividends and interest receivable; claims against insurance companies; claims against customers for returnable goods) Basic issues for accounts and notes receivables: recognition, price subject to trades discounts, sales discounts, sales returns and allowances, tvm, valuation, record credit losses as debits to bad debt expense/uncollectible. Accounts expense: credit to allowances for doubtful accounts or accounts receivables, direct write-off method, show only actual losses from uncollectibles, debit bad debt; credit a/r. Measures number of times a company collects receivables during the period. To safeguard cash and ensure the accuracy of the accounting records for cash, companies need effective internal control over cash.