Cash

Nature and Composition Management and Control

– Imprest petty cash fund

– Physical protection

Reporting Cash– Restricted cash

– Bank overdrafts

– Cash equivalents

Accounts Receivables

Discounts– Trade

– Cash

Valuation of Accounts Receivable– Uncollectible accounts

» Direct write-off versus allowance method

» Allowance method using percentage of sales

» Allowance method using percentage of receivables

» Collection of receivables previously written off

– Sales returns and allowances

Notes Receivable

Recognition of Notes Receivable– Note issued at face value

– Note not issued at face value

» zero interest

» interest

– Special situations

» notes received for cash and other rights

» notes received for property, goods, or services

» imputed interest

Valuation of Notes Receivable

Disposition of Accounts and Notes Receivables

Secured Borrowing Sale of Receivables

– Without recourse

– With recourse

Secured borrowing versus Sale– transferred asset has been isolated from the transferor

– transferees have obtained the right to pledge or exchange either the transferred assets or beneficial interests in the transferred assets

– transferor does not maintain effective control over the transferred assets through an agreement to repurchase or redeem them before their maturity

Disposition of Accounts and Notes Receivables

Presentation and Analysis– Presentation of receivable

– Analysis of receivables