ONLY COPY AND PASTE ANSWERS Cash and receivables form a very important part of t
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Question
ONLY COPY AND PASTE ANSWERSCash and receivables form a very important part of the current assets of any company. Based on your study of Chapter 7 and your research on the Internet, define cash and cash equivalent and restricted cash. What are receivables? How do accounts receivable and notes receivable differ?
ONLY COPY AND PASTE ANSWERS ONLY COPY AND PASTE ANSWERS
Cash and receivables form a very important part of the current assets of any company. Based on your study of Chapter 7 and your research on the Internet, define cash and cash equivalent and restricted cash. What are receivables? How do accounts receivable and notes receivable differ?
ONLY COPY AND PASTE ANSWERS
Cash and receivables form a very important part of the current assets of any company. Based on your study of Chapter 7 and your research on the Internet, define cash and cash equivalent and restricted cash. What are receivables? How do accounts receivable and notes receivable differ?
Cash and receivables form a very important part of the current assets of any company. Based on your study of Chapter 7 and your research on the Internet, define cash and cash equivalent and restricted cash. What are receivables? How do accounts receivable and notes receivable differ?
ONLY COPY AND PASTE ANSWERS
Explanation / Answer
Cash:
Cash consists of currency, coins in hand. In a broader sense it also includes checkable deposits with bank.
Cash Equivalents:
Short-term, highly liquid investments that are both:
(a) readily convertible to known amounts of cash, and
(b) so near their maturity that they present insignificant risk of changes in interest rates.
Examples are Treasury bills, commercial paper, and money market funds purchased with cash that is in excess of immediate needs.
Restricted Cash
Material amounts of cash set aside for a particular purpose. Companies segregate restricted cash from "regular" cash for reporting purposes, and they classify restricted cash either in the current assets or in the long-term assets section, depending on the date of availability or disbursement.
Receivables:
Claims held against customers and others for money, goods, or services. Companies classify receivables as either current (short-term, for which collection is expected within a year or the current operating cycle), or non-current (long-term). Receivables are further classified in the balance sheet as either trade or non-trade receivables.
Notes Receivables
Written promises to pay a certain sum of money on a specified future date. Notes receivable may arise from sales, financing, or other transactions and may be short-term or long-term.
Yes, accounts receivable and notes receivable differ. Notes receivable is a written promise while trade receivable are claims against customers occuring in the ordinary course of business.
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