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CH 4 Aplkwsh
CH 4 Aplkwsh
CH 4 Aplkwsh
4
ANALYZING INVESTING ACTIVITIES
Current Assets
Receivables
Collection risk: rely on knowledge of industry
conditions to assess the provision for
uncollectibles
Authenticity of receivables: credit policy and the
right of merchandise return
Securitization of receivables
Current Assets
Prepaid Expenses
Inventories
Inventory cost flows
Inventory costing for manufacturing companies:
overhead
Lower of costs or market
Investment Securities