how is liquidity determines in cash collection period

Q: How is the account Cash classified and what kind of balance should it have?

A: The cash account ledger record all the receipt on the debit side and expense paid credit side. A…

Q: Define cash and cash equivalents and explain how to report them.

A: Cash and cash equivalents are the current assets of a company which are available as cash or readily…

Q: What are the considerations for recording and recognizing cash discounts received?

A: Cash discounts, also known as sales discounts or prompt payment discounts, are reductions in the…

Q: Briefly describe the flow of cash among receivables, cash,and marketable securities.

A: Financial assets:   The assets that are easily convertible into cash are referred to as financial…

Q: Which of the following method will be adopted to disclose Cash equivalents in the balance sheet? a.…

A: Historical cost method will be adopted to disclose Cash equivalents in the balance sheet....…

Q: Demonstrate the link between cash reported in the balance sheet and cash reported in the statement…

A: The cash flow statement is primarily linked to the balance sheet as it shows the impact of the…

Q: The total cash receipts have to be put in the final part?

A: The cash receipts means the amount of money received either through cash mode or bank.

Q: What is the difference between the sources (in nows) and uses (out nows) of cash?

A: The question is based on the concept of cash flow statement and cash flow analysis for a particular…

Q: Explain how the amount of cash payments to suppliers iscomputed under the direct method.

A: Statement of cash flows: The statement of cash flows is a statement which includes all transactions…

Q: How do I calculate cash provided by operations?

A: Cash provided by the operations = Cash flow from operations = EBIT x (1 - Tax rate, T) + Non cash…

Q: In September of 2021, Calhoun Financial Services became involved in a tax dispute with the IRS. On…

A: Accrued-related liability refers to a financial obligation that a company has incurred but has not…

Q: what are the operational aspects of the discounted cash flow (DCF) method?

A: What Is Discounted Cash Flow (DCF)?  Limited income (DCF) is a valuation technique used to assess…

Q: 16. Macdo had 150,000 units of product A on hand at January 1, 2020, costing P21 each. Purchases of…

A: Under the LIFO inventory method, the latest purchases are sold first (last in first out). So the…

Q: How do successive balance sheets and the income statements determine cash inflows and outflows for a…

A: The information contained in successive balance sheets and income statements is useful for analyzing…

Q: What are the Examples of cash equivalents?

A: Cash & Cash equivalents: Cash is the money which is readily available in the form of currency.…

Q: What are the different risks associated in the accounting of cash

A: The element of risk arises in each and every area and how well we can minimise or reduce the risk is…

Q: Describe Financing cash inflows that includes cash received.

A: Statement of cash flows: This statement reports all the cash transactions which are responsible for…

Q: Indentify some of key cash inflows and cash outflows?

A: Cash flows of the firm is the movement of cash to and from business. It includes all the inflows of…

Q: when does a company declare a cash devidends

A: Dividends are the considerations which are paid out of the profits by the entity for the amount…

Q: Define Statement of cash fl ows

A: A cash flow statement provides data regarding all cash inflows a company receives from its ongoing…

Q: Distinguish between the gross and net methods of accounting for cash discounts.

A: Cash discount: A cash discount is a reduction in the amount that is to be paid by the credit…

Q: Explain the possible restrictions on cash and their implications for classification in the balance…

A: Restricted Cash Restricted cash is define as the cash is not freely available for the company to…

Q: Define restricted cash and indicate how it should bereported on the balance sheet

A: Balance sheet: Balance Sheet is one of the financial statements that summarize the assets, the…

Cash Book

So, before coming to the topic of cash books, I will let you briefly explain about the cash so that you all can be familiar with the word cash. Cash comes under the category of the current asset which is used as a medium of exchange for all the financial transactions in the firm. Cash is something that is universally accepted as a mode of payment. So, now comes to the topic i.e., cash book.