ACCT 110 Lecture Notes - Lecture 27: Santa Barbara City College, Accounts Payable, Loyalty Program
Document Summary
Credit unearned revenue (only if extended warranty is sold) Bonuses/loyalty programs (i. e. for every spent and expires in 2 years) Pro-rate the total of cash between the two above credits. Nontrade receivable (including items like interest receivable, amounts due from officers, and advances to employees) If the amount is material, it is reported separately in the assets section. Could be reported as restricted cash if there are blockages in exchanging the money for canadian. Occur when cheques are written for more than the amount in the bank account. Reported in current liabilities, if not material could be accounts payable. Can be offset against cash (reduction in cash balance) if there is available cash in another account of the same bank as the overdraft. Usually investments with maturities of three months or less. Ifrs allows preferred shares that are acquired close to their maturity date to qualify.
