Download honors pre-calculus - Tolland Public Schools

BUSINESS
HIGH SCHOOL-ACCOUNTING II
Cash,
Short Term
Investments
and
Account Receivables
Accounting
for
Cash
Change Fund
Petty Cash
Fund
Marketable Securities
Chapter 3
Short-Term
Investment
Allowance Method
Account
Receivables
Other Revenue
Direct Write Off Method
Uncollectible Accounts
Accounting II Essential Learning Expectations-Chapter 3:
•A change fund is money used to make change for cash transactions.
Content Vocabulary:
•A petty cash fund is the cash a business keeps on hand for making small,
incidental cash payments.
Aging of Accounts
Receivable
•A business that has more cash in the bank than it needs to pay current bills may
invest in short-term investments called Marketable Securities.
•The direct write-off method is primarily used by businesses with few charge
customers.
•The allowance method of accounting for uncollectible accounts matches sales and
the uncollectible accounts expense in the same period.
Allowance Method
Direct Write-Off Method
Marketable Securities
Uncollectible Accounts