Samenvatting
Summary Chapters 7-8 Financial Accounting 1 UvA
- Instelling
- Universiteit Van Amsterdam (UvA)
Detailed notes and summaries generated from the textbook as well as lectures.
[Meer zien]Voorbeeld 2 van de 6 pagina's
Voorbeeld 2 van de 6 pagina's
In winkelwagengesponsord bericht van onze partner
Gekoppeld boek
Titel boek:
Auteur(s):
- Uitgave:
- ISBN:
- Druk:
Verkoper
Volgen
Voorbeeld van de inhoud
Lecture 6Cash and Notes Receivable:
- Cash is an asset that is readily converted into any other type of asset.
- Cash includes funds immediately available from bank accounts, bank notes, coins and money
orders, checks, etc.
Cash Equivalents:
- Short-term investments readily convertible to cash with a minimal risk of price changes due
to interest rate movements.
Accounting for Cash:
- Cash account is used to register receiving and paying cash to/from: governments, employees,
customers, suppliers, creditors, owners, etc.
Cash in Corporations:
- Cash is generally stored on bank accounts or invested in cash equivalents.
- Stores, restaurants and other types of firms that receive cash payments from customers also
have currency stored in the point-of-sale terminals (cash registers).
Petty-Cash Fund:
- Certain (pre-decided) amount of money held in a fund, available for insignificant monetary
costs of the business.
- One specific employee is made responsible for the fund – the cash custodian.
- Organizations use an account ‘petty cash’ to register the creating and replenishment of the
fund.
- Accounts effects of payments are recorded when petty cash is replenished.
Petty-Cash Fund Replenishment:
- PC funds usually have minimum and maximum amount.
- When the fund reaches a minimum, it is replenished (money is added), usually to the
maximum amount.
- A petty-cash fund is always replenished at the end of the accounting period, regardless of the
amount of cash in the fund.
- There is no petty cash recording in the journal, only Dr. Expenses Cr. Cash
, Cash Differences:
- To ensure the amount of cash ‘in the books’ is correct, organizations use a specific account to
record unexplained differences.
o Common label – Cash Over and Short
- When cash is short, the record made is Dr. Cash + Dr. Cash Over and Short
- When cash is over, the record made is Dr. Cash + Cr. Cash Over and Short
Company Bank Accounts:
- With contemporary technology the need for petty cash funds with bank notes and coins have
reduced.
- Like individuals, organizations can have multiple bank accounts.
- Bank accounts are typically tied to accounts in the organization’s general ledger.
- Periodically, the 2 balances will have to be reconciled.
- There can be justified differences: time lags, errors (by either party), etc.
Checks:
- In the US and some other counties, the use of checks is still widespread.
- Checks are written orders signed by an account holder directing the bank to pay a specified
sum of money to a designated employee.
Internal Control of Cash:
- Cash is the most susceptible asset to fraudulent activities.
- Cash is easily concealed and transported.
- Internal control mechanisms must be established within business to prevent fraud, these
include: procedures, checks, monitoring devices and limitations of decision-making.
- These procedures are just an example of all the internal control systems.
- Designing, testing, updating and consulting on internal control procedures is one of the most
important tasks of accountants.
Internal Control:
- Methods and measures adopted by an organization to serve the following 4 general purposes:
o Safeguard assets.
o Enhance accuracy and reliability of accounting records.
o Ensure compliance with laws and regulations and incentivize employees to follow
company policies.
o Promote operational efficiency.
Safeguarding of Assets:
- Preventing theft and fraud.
- Fraud refers to dishonest acts by employees which result in personal gain through the loss to
the business (at the cost of the employer).
2
Voordelen van het kopen van samenvattingen bij Stuvia op een rij:
Verzekerd van kwaliteit door reviews
Stuvia-klanten hebben meer dan 700.000 samenvattingen beoordeeld. Zo weet je zeker dat je de beste documenten koopt!
Snel en makkelijk kopen
Je betaalt supersnel en eenmalig met iDeal, creditcard of Stuvia-tegoed voor de samenvatting. Zonder lidmaatschap.
Focus op de essentie
Samenvattingen worden geschreven voor en door anderen. Daarom zijn de samenvattingen altijd betrouwbaar en actueel. Zo kom je snel tot de kern!
Veelgestelde vragen
Wat krijg ik als ik dit document koop?
Je krijgt een PDF, die direct beschikbaar is na je aankoop. Het gekochte document is altijd, overal en oneindig toegankelijk via je profiel.
Tevredenheidsgarantie: hoe werkt dat?
Onze tevredenheidsgarantie zorgt ervoor dat je altijd een studiedocument vindt dat goed bij je past. Je vult een formulier in en onze klantenservice regelt de rest.
Van wie koop ik deze samenvatting?
Stuvia is een marktplaats, je koop dit document dus niet van ons, maar van verkoper sergeisysoyev. Stuvia faciliteert de betaling aan de verkoper.
Zit ik meteen vast aan een abonnement?
Nee, je koopt alleen deze samenvatting voor €7,47. Je zit daarna nergens aan vast.
Is Stuvia te vertrouwen?
4,6 sterren op Google & Trustpilot (+1000 reviews)
Afgelopen 30 dagen zijn er 56326 samenvattingen verkocht
Opgericht in 2010, al 14 jaar dé plek om samenvattingen te kopen