Cash and Receivables概要1.ppt

Questions List 3 characteristics of Assets. What are the differences between current assets and non-current assets . What kinds of accounts can be recorded into balance sheet item “cash” ? Explain the characteristics of Cash equivalents; list some examples. How to generate a amount of cash within a company ? Assets Assets are the probable future economic benefits obtained and controlled by a company as a result of past transactions or events recording assets bring probable future economic benefits benefits can be reasonablely estimated. 例 下列符合资产定义的是（） 购入某项专利权 短期经营租入的设备 待处理财产损失 计划购买的某项设备 Assets Current assets 1. in form of cash 2. normally be realized in cash 3. conserve the use of cash within one year Non-current assets Cash Equivalents (其他货币资金） 外埠存款 存出投资款 Cash A company must keep certain cash in their accounts for the operations Question ? How to generate large amount of cash to a company ? Cash 1. Issuing stock and bonds ( debt financing and equity financing) 2. sell non-current assets. 3. Operating cash inflows more than cash out flows. Example 1 The following items appeared on the year-end trial balance of Consolidated Freight Corporation: cash in a checking account, U.S. Treasury bills that mature in six months, Deposit account, cash in a savings account, currency and coins. Which of these items would be included in the company’s balance sheet as cash and cash equivalents? Example 2 Delta Automotive Corporation has the following assets listed in its 12/31/11 trial balance: Cash in bank-checking account $22,500 U.S. Treasury bills (mature in 60 days) 5,000 Cash on hand (currency and coins) 1,350 U.S. Treasury bills (mature in six months) 10,000 deposit account 1,840 Required: Determine the correct balance of cash and cash equivalents to be reported in the current asset section of the 2011 balance sheet. Answer Cash and cash equivalents includes: Cash in bank – ch