实用会计英语课件 Chapter 12 Cash and Marketable Securities.pptVIP

What is Cash? Coins Currency Money orders received from customers Checks Money deposited in banks Compensating balance In order to ensure a company’s credit-granting arrangement, a company is forced to keep a minimum amount in the bank account. The minimum is called compensating balance. Application of Cash Cash and profit Cash inflow outflow Positive and negative cash flow A positive cash flow Inflow of cash outflow of cash Components of cash flow Marketable securities(Short-term investment) Classification of marketable securities Credit securities Equity securities Mixed securities Entry of marketable securities Entry of marketable securities Entry of marketable securities Entry of marketable securities 12-* CASH AND MARKETABLE SECURITIES CHAPTER 12 Account receivable Inventory Property Suppliers Employees Rents Convert Can’t pay Cash Profit customers lenders investors salaries suppliers creditors out in out out in in A negative cash flow Inflow of cash outflow of cash Cash flow Operating cash flow Internal operations Investing cash flow Internal non-operating activities Financing cash flow To and from external sources Marketable securities are government securities, bonds, or other securities which are invested by a company to avoid the excess cash lie idle . They are liquid assets in that they can easily and quickly be converted into cash. Marketable securities held as a temporary investment are classified as current assets. Marketable securities(Short-term investment) 1. have definite market value and be exchanged on the security market publicly; As short-term investment, marketable securities should : 2. as surplus funds, have liquidity and profitability. Credit securities indicate the credit that is owned by the investors, namely, the claim to the principal and interest on maturity date. Classification of marketable securities Equity securities show the equity that the owner owns, namely, the claim to