Ebook Controllership - The work of the managerial accountant (7th edition): Part 2

(BQ) Part 2 book "Controllership - The work of the managerial accountant" has contents: Planning and control of the balance sheet, financial and related reports; computer systems and related technology; some administrative and special aspects of the controller’s department. | Page 529 Monday, December 8, 2003 4:21 PM CHAPTER 26 PLANNING AND CONTROL OF CASH AND SHORT-TERM INVESTMENTS INTRODUCTION 529 OBJECTIVES OF CASH PLANNING AND CONTROL 530 DUTIES OF THE CONTROLLER VERSUS THE TREASURER 530 THE CASH FORECAST 530 (a) Purposes of Cash Forecasting 530 (b) Cash Forecasting Methods 531 (c) Estimating Cash Receipts 536 (d) Estimating Cash Disbursements 537 (e) FASB Statement of Financial Accounting Standards No. 95: Statement of Cash Flows 538 (f) Relation of Cash Budget to Other Budgets 539 (g) Length of Cash Budget Period 539 (h) Putting the Cash Budget to Work 542 CASH COLLECTIONS 542 (a) Administration of Cash Receipts 542 (b) Acceleration of Cash Receipts 542 (c) Internal Control of Cash Receipts 543 (d) Illustrative Cash Receipts Procedure 543 (e) Common Methods of Misappropriating Cash 544 (f) Other Means of Detecting Fraud 546 CASH DISBURSEMENTS 546 (a) Control of Cash Disbursements 546 (b) Administrative Bank Accounts 547 INTERNAL CONTROL 547 (a) Importance of Internal Control 547 (b) Some Principles of Internal Control 547 (c) Methods of Misappropriating Funds 548 (d) Bank Reconciliations 548 (e) Petty Cash Funds 549 (f) Payrolls 550 REPORTS ON CASH 550 (a) Cash Reports for Internal Use 550 (b) Cash Flow Analysis for Investment Purposes 552 CASH FLOW RATIO ANALYSIS 553 IMPACT OF NEW INFORMATION TECHNOLOGY AND ORGANIZATIONAL STRUCTURES 554 INVESTMENT OF SHORT-TERM FUNDS 555 (a) Criteria for Selecting Investments 555 (b) Investment Restrictions 555 (c) Investment Controls 557 (d) Reports to Management 557 INTRODUCTION Most business executives have long been aware of the need for cash. Supplier bills must be paid by cash. Payrolls must be met with cash. The ability of an entity to generate adequate cash has assumed more importance. Witness the attention given cash flow in leveraged buyouts (LBOs) or other proposed mergers or .