Chapter 5 - Accounting for and presentation of current assets. After reading this chapter, you should be able to answer the following questions: What is included in the cash amount reported on the balance sheet? What are the features of an internal control system, and why are internal controls important? What is the bank reconciliation procedure?. | © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. Accounting: What The Numbers Mean Tenth Edition Marshall, McManus, and Viele Chapter 5 Accounting for and Presentation of Current Assets PowerPoint Authors: Susan Coomer Galbreath, ., CPA Charles W. Caldwell, ., CMA Jon A. Booker, ., CPA, CIA Cynthia J. Rooney, ., CPA Chapter 5: Accounting for and Presentation of Current Assets Short-term Securities Current assets include cash and those assets that are expected to be converted to cash or used up within one year, or an operating cycle, whichever is longer. Cash Accounts and Notes Receivable Prepaid Expenses Current Assets include What are Current Assets? 5- Current assets include cash and those assets that are expected to be converted to cash or used up within one year, or an operating cycle, whichever is longer. Short-term securities, receivables, inventories and prepaid expenses are all classified as current assets. Coins and paper money Checking accounts Money orders Undeposited receipts Petty cash funds Cash Includes LO 1 Cash 5- Learning Objective 1: Explain what is included in the cash and cash equivalents amount reported on the balance sheet. Cash includes more than just coins and paper money; petty cash funds, undeposited receipts, money orders, and checking accounts are also classified as cash. Internal Control Over Cash Require daily deposits. Make all payments by check. Promptly reconcile bank statements. Internal control objectives are to ensure: Effective and efficient operations. Reliable financial reporting. Compliance with applicable laws and regulations. LO 2 The Internal Control System 5- Learning Objective 2: Describe the key features of a system of internal control and explain why internal controls are important. Objectives of an internal control system are to ensure effective and efficient operations, reliable financial reporting, and compliance with applicable laws and regulations. Effective internal | © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. Accounting: What The Numbers Mean Tenth Edition Marshall, McManus, and Viele Chapter 5 Accounting for and Presentation of Current Assets PowerPoint Authors: Susan Coomer Galbreath, ., CPA Charles W. Caldwell, ., CMA Jon A. Booker, ., CPA, CIA Cynthia J. Rooney, ., CPA Chapter 5: Accounting for and Presentation of Current Assets Short-term Securities Current assets include cash and those assets that are expected to be converted to cash or used up within one year, or an operating cycle, whichever is longer. Cash Accounts and Notes Receivable Prepaid Expenses Current Assets include What are Current Assets? 5- Current assets include cash and those assets that are expected to be converted to cash or used up within one year, or an operating cycle, whichever is longer. Short-term securities, receivables, inventories and prepaid expenses are all classified as current assets. Coins and paper money Checking .
