1. Financial Assets Cash Accounts Receivable 1 6/4/2009

2. Cash Cash, any items that banks will accept for deposit. 1- Coin and paper money 2- Check 3- Bank credit card sales 4- Money order 5- Traveler’s check 2 6/4/2009

3. Reporting cash in the balance sheet Cash Equivalents 3 6/4/2009

4. Reporting cash in the balance sheet Restricted Cash 4 6/4/2009

5. Reporting cash in the balance sheet Lines of Credit 5 6/4/2009

6. The statement of cash flows 6 6/4/2009

7. Case management 7 6/4/2009

8. Using excess cash balances efficiently 1- Cash that is available for long-term investment may be used to finance growth and expansion. 2- If cash is not needed for business purposes, it may be distributed to the company’s stockholders. 8 6/4/2009

9. Internal control over cash 9 6/4/2009

10. Bank statements The beginning bank balance, deposits, checks paid, other debits and credits in the month, and the ending bank balance. Reconciling the bank statement Explaining the differences between the balance shown in bank statement & depositor’s account records. 10 6/4/2009

11. Accounts receivable Uncollectible Accounts: If a company makes credit sales to customers, some accounts inevitably will turn out to be uncollectible. 11 6/4/2009

12. The Allowance for Doubtful Accounts The net realizable value is the amount of accounts receivable that the business expects to collect. Writing off an Uncollectible Account Receivable When an account is determined to be uncollectible, it no longer qualifies as an asset and should be written off. 12 6/4/2009

13. Monthly Estimates of Credit Losses At the end of each month, management should estimate the probable amount of uncollectible accounts and adjust the Allowance for Doubtful Accounts to this new estimate. There are 2 approaches to estimate credit loss- 1- The Balance Sheet Approach 2- The Income Statement Approach 13 6/4/2009

14. Concentrations of credit risk Concentrations of credit risk occur if a significant portion of a company’s receivables are due from a few major customers or from customers operating in the same industry or geographic region. 14 6/5/2009

15. Thank You 15 6/5/2009