Accounting
Textbooks
Boundless Accounting
Accounting Textbooks Boundless Accounting
Accounting Textbooks
Accounting

Chapter 4

Controlling and Reporting of Cash and Receivables

Book Version 3
By Boundless
Boundless Accounting
Accounting
by Boundless
View the full table of contents
Section 1
Overview of Cash
Thumbnail
What Is Cash?

Cash and cash equivalents are the most liquid type of company assets used by businesses to settle debts and purchase goods.

Thumbnail
Types of Cash

Types of cash include currency, funds in bank accounts, and non-risky financial instruments that are readily convertible to cash.

Thumbnail
Reporting Cash

Cash and cash equivalents are reported in the current asset section of a business's balance sheet.

Section 2
Managing Cash
Thumbnail
Cash Controls

Cash internal controls is a system used to promote accuracy, prevent theft, and ensure a business has enough cash to pay its debts.

Thumbnail
Using a Bank for Control

A bank is a good cash control because it limits employees' access to company assets and provides documentation on withdrawals and deposits.

Thumbnail
Reconciling Cash Accounts and Bank Statements

A bank reconciliation is an internal control that ensures that the cash in its accounts equals what it has recorded in its books.

Thumbnail
Basics of Cash Management

A company manages its cash primarily through the use of a voucher system and bank reconciliations.

Section 3
Overview of Receivables
Thumbnail
What Is a Receivable?

A receivable is money owed to a business by its clients and shown on its balance sheet as an asset.

Thumbnail
Types of Receivables

Receivables can generally be classified as accounts receivables or notes receivable, though there are other types of receivables as well.

Thumbnail
Recognizing Accounts Receivable

If you are operating under the accrual basis, you record account receivable transactions irrespective of any changes in cash.

Thumbnail
Valuing Accounts Receivable

Receivables of all types are normally reported at their net realizable value, which is the amount the company expects to receive in cash.

Section 4
Notes Receivable
Thumbnail
Components of a Note

Notes Receivable represents claims for which formal instruments of credit are issued as evidence of debt, such as a promissory note.

Thumbnail
Recognizing Notes Receivable

In accounting, notes receivables are accounts to keep track of accrued assets that have been earned but not yet received.

Thumbnail
Valuing Notes Receivable

Companies have two methods available to them for measuring the net value of accounts receivable: the allowance method and the direct write-off method.

Thumbnail
Write-Offs

Companies use two methods for handling uncollectible accounts: the allowance method and the direct write-off method.

Section 5
Basics of Receivables Management
Thumbnail
Activities to Manage Receivables

Accounts receivable represents money owed by entities to the firm on the sale of products or services on credit.

Thumbnail
Managing to Prevent Fraud

To help prevent fraudulent activities, management must implement internal controls/structure and know what situations to look for.

Section 6
Reporting and Analyzing Receivables
Thumbnail
Classifying Receivables

Receivables can be classified as accounts receivables, trade debtors, bills receivable, and other receivables.

Thumbnail
Dealing with Foreign Currency and Bad Debts

To deal with foreign currency and bad debts, we have a "gain or loss" account and methods to measure the net value of accounts receivable.

Thumbnail
Reporting Receivables

Accounts receivable are reported as a line item on the balance sheet and in a more detailed again report.

Using the Receivables Turnover Ratio

The receivables turnover ratio measures how efficiently a firm uses its assets.

You are in this book
Boundless Accounting by Boundless
Previous Chapter
Chapter 3
Overview of Financial Statements
  • The Income Statement
  • The Balance Sheet
  • The Statement of Cash Flows
  • Special Considerations for Merchandising Companies
Current Chapter
Chapter 4
Controlling and Reporting of Cash and Receivables
  • Overview of Cash
  • Managing Cash
  • Overview of Receivables
  • Notes Receivable
  • Basics of Receivables Management
and 1 more sections...
Next Chapter
Chapter 5
Controlling and Reporting of Inventories
  • Understanding Inventory
  • Controlling Inventory
  • Valuing Inventory
  • Detail on Using LIFO
  • Additional Topics in Inventory Valuation
and 2 more sections...
Subjects
  • Accounting
  • Algebra
  • Art History
  • Biology
  • Business
  • Calculus
  • Chemistry
  • Communications
  • Economics
  • Finance
  • Management
  • Marketing
  • Microbiology
  • Physics
  • Physiology
  • Political Science
  • Psychology
  • Sociology
  • Statistics
  • U.S. History
  • World History
  • Writing

Except where noted, content and user contributions on this site are licensed under CC BY-SA 4.0 with attribution required.