会计英语2综述.ppt

Ch2 accounting for assets (Ⅰ) content §2.1 Cash and internal control over cash transaction §2.2 Accounts receivable notes receivable §2.3 Inventories Assets Asset is an economic resource controlled by the enterprise as a result of past events and from which future economic benefits are expected to flow to the enterprise. §2.1 cash and internal control over cash transaction 1. Basic definitions: Cash—is money on deposit in banks and any items that a bank will accept for deposit. §2.1 cash and internal control over cash transaction forms: ? coins ? paper money ? checks ? money orders ? traveler’s checks ? charge slip signed by customers using bank credit cards §2.1 cash and internal control over cash transaction cash equivalents: ? money market funds ? certificates of deposit (CDs) ? high-grade commercial paper ★在balance sheet 中，“cash and cash equivalents” §2.1 cash and internal control over cash transaction 2.Cash in “the statement of cash flow” How much cash is enough? ? too much——non-productive(solvency↑, profitability↓) ? too little—— it cant meet the companys obligations on a timely basis. generally, the balance of cash≈ 5% -10% of total assets §2.1 cash and internal control over cash transaction 3.internal control over cash 6 principles: establishment of responsibility segregation of duties documentation procedures physical, mechanical, and electronic controls independent internal verification other controls §2.1 cash and internal control over cash transaction ① establishment of responsibility: (p32).. includes authorization and approval of transactions. §2.1 cash and internal control over cash transaction ② segregation of duties : ? Related activities should be assigned to different individuals; e.g.: Establishing the recording for an asset should be separate from the physical custody of that asset. §2.1 cash and internal control over cash transaction ③ documentation procedure