Assessing Cash and Receivables
In This Chapter
Getting familiar with different types of cash accounts
Introducing cash management
Collecting accounts receivable
Looking at notes receivable
Writing off uncollectibles
Part III of this book covers current assets, which means assets that either are cash or are easily convertible to cash. Chapter 10 discusses inventory, and this chapter walks you through cash and receivables. In addition, you can find a great overview of the balance sheet, which shows cash and receivables, in Chapter 6.
In this chapter, you read about the different types of cash and cash-equivalent accounts a business may have. Included in this category are your garden-variety operating cash account, which a company uses to pay its day-to-day expenses, and the more exotic sweep accounts, which are income-bearing accounts a company uses in the short term to earn income from excess funds sitting in other bank accounts.
You also find out about cash equivalents, ...