会计英语Chapter_4_Current_Assets教材教学课件.pptVIP

出版社 经管分社 会计英语 Chapter 4 Current Assets Learning Objectives 1.Define cash and its valuation in the balance sheet. 2.Describe the objectives of cash management 3.Explain means of achieving internal control over cash transactions.  4.Prepare a bank reconciliation and explain its purpose. 5.Account for uncollectible receivables.  6.Inventories defined. 7.Inventory measurement. 4.1 Cash Accountants define cash as money on deposit in banks and any items that banks will accept for deposit. These items include not only coins and paper money, but also checks, money orders and travelers’ checks. Banks also accept drafts signed by customers using bank credit cards, such as Visa and MasterCard. Thus sales to customers using bank cards are cash sales, not credit sales, to the enterprise that makes the sale. 4.1.1 Reporting Cash in the Balance Sheet  Cash is listed first in the balance sheet because it is the most liquid of all current assets. For purposes of balance sheet presentation, the balance in the Cash controlling account is combined with that of the controlling account for cash equivalents. 4.1.2 Cash Equivalents Some short-term investments are so liquid that they are termed cash equivalents. Examples include money market funds, U.S. Treasury bills, and high-grade commercial paper (very short-term notes payable that are issued by large, creditworthy corporations). These assets are considered so similar to cash that they are combined with the amount of cash in the balance sheet. Therefore, the first asset listed in the balance sheet often is called Cash and Cash Equivalents. 4.1.3 Restricted Cash  Some bank accounts are restricted as to their use, so they are not available to meet the normal operating needs of the company. For example, a bank account may contain cash specifically marked for the acquisition of plant assets. Bank accounts in some foreign countries are res