Chapter 8 Cash and Internal Controls
【Objectives】
In this chapter, you will learn the following conceptual objectives: C1: Define internal control and identify its purpose and principles. C2: Define cash and cash equivalents and explain how to report them. C3: Identify control features of banking activities.
In this chapter, you will learn the following procedural objectives: P1: Apply internal control to cash receipts and disbursements. P2: Explain and record petty cash fund transactions. P3: Prepare a bank reconciliation.
【Contents】
A. Internal Control
1. Purpose of internal control 2. Principles of internal control 3. Technology and internal control 4. Limitation of internal control
B. Cash Internal Control
1. Cash, cash equivalents and liability 2. Control of cash receipt 3. Control of cash disbursements
C. Banking Activities as Controls
1. Basic bank services 2. Bank statement 3. Bank reconciliation
【Key points & Difficult points】
Key points： Define cash and cash equivalents and explain how to report them
Apply internal control to cash receipts and disbursements
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Prepare a bank reconciliation
Difficult points：Prepare a bank reconciliation
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Chapter 9 Accounting for Receivables
【Objectives】
In this chapter, you will learn the following conceptual objectives: C1: Describe accounts receivable and how they occur and are recorded
C2: Describe a note receivable and the computation of its maturity date and interest C3: Explain how receivables can be converted to cash before maturity In this chapter, you will learn the following procedural objectives:
P1: Apply the direct write-off and allowance methods to account for accounts receivable P2: Estimate uncollectibles using methods based on sales and accounts receivable P3: Record the receipt of a note receivable
P4: Record the honoring and dishonoring of a note and adjustments for interest
【Contents】
A. Accounts Receivables
1. Recognizing accounts receivable 2. Valuing accounts receivable
3. Estimating bad debts expense B. Notes Receivable
1. Computing maturity and interest 2. Recognizing notes receivable 3. Valuing and setting notes
C. Disposing Accounts Receivable
1. Selling receivables 2. Pledging receivables
【Key points & Difficult points】
Key points：Account for transactions relevant to accounts receivable;
Account for transactions relevant to notes receivable;
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Difficult points：Apply the direct write-off and allowance methods to account for bad debt
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Chapter10 Plant Assets, Natural Resources, and Intangibles
【Objectives】
In this chapter, you will learn the following conceptual objectives: C1: Describe plant assets and issues in accounting for them. C2: Explain depreciation and the factors affecting its computation. C3: Explain depreciation for partial years and changes in estimates. In this chapter, you will learn the following analytical objectives: A1: Compare and analyze alternative depreciation methods. In this chapter, you will learn the following procedural objectives: P1: Apply the cost principle to compute the cost of plant assets.
P2: Compute and record depreciation using the straight-line, units-of-production, and declining-balance methods.
P3: Distinguish between revenue and capital expenditures, and account for them. P4: Account for asset disposal through discarding or selling an asset. P5: Account for natural resource assets and their depletion. P6: Account for intangible assets
【Contents】
SECTION 1: PLANT ASSETS
A. Cost Determination
1. Land
2. Land improvements 3. Buildings
4. Machinery and equipment 5. Lump-sum purchase
B. Depreciation
1. Factors in computing depreciation
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