Chapter 7 - Cash and receivables. After studying this chapter, you should be able to: Understand cash and accounts receivable from a business perspective, define financial assets, and identify items that are considered cash and cash equivalents and how they are reported, define receivables and identify the different types of receivables from an accounting perspective,. | 1 CHAPTER 7: CASH AND RECEIVABLES 2 Chapter 7: Cash and Receivables After studying this chapter, you should be able to: Understand cash and accounts receivable from a business perspective. Define financial assets, and identify items that are considered cash and cash equivalents and how they are reported. Define receivables and identify the different types of receivables from an accounting perspective. Account for and explain the accounting issues related to the recognition and measurement of accounts receivable. Account for and explain the accounting issues related to the impairment in value of accounts receivable. Continued 3 3 After studying this chapter, you should be able to: (Continued) Account for and explain the accounting issues related to the recognition and measurement of short-term notes and loans receivable. Account for and explain the accounting issues related to the recognition and measurement of long-term notes and loans receivable. Account for and explain the basic accounting issues related to the derecognition of receivables. Explain how receivables and loans are reported and analyzed. Identify differences in accounting between accounting standards for private enterprises (ASPE) and IFRS, and what changes are expected in the near future. 4 Chapter 7: Cash and Receivables 4 Cash and Receivables 5 5 Understanding Cash and Accounts Receivable Managing and controlling cash and accounts receivable are critical objectives for many companies Key concerns relating to management and control of cash include Implementing appropriate internal controls, including regular bank reconciliations Minimizing “idle” cash Key concerns relating to management and control of accounts receivable include Implementing appropriate internal controls, including appropriate credit policies Speeding up the collection cycle 6 6 Financial Asset “Any asset that is: (i) cash; (ii) a contractual right to receive cash or another financial asset from another party; (iii) a contractual | 1 CHAPTER 7: CASH AND RECEIVABLES 2 Chapter 7: Cash and Receivables After studying this chapter, you should be able to: Understand cash and accounts receivable from a business perspective. Define financial assets, and identify items that are considered cash and cash equivalents and how they are reported. Define receivables and identify the different types of receivables from an accounting perspective. Account for and explain the accounting issues related to the recognition and measurement of accounts receivable. Account for and explain the accounting issues related to the impairment in value of accounts receivable. Continued 3 3 After studying this chapter, you should be able to: (Continued) Account for and explain the accounting issues related to the recognition and measurement of short-term notes and loans receivable. Account for and explain the accounting issues related to the recognition and measurement of long-term notes and loans receivable. Account for and explain the basic .
