Opening Activity Wednesday Nov, 2 2011

Cash: A current asset account which includes currency, coins, checking accounts, and undeposited checks received from customers. The amounts must be unrestricted. (Restricted cash should be recorded in a different account.) Petty cash:A current asset account that represents an amount of cash for making small disbursements for postage due, supplies, etc. Temporary investments:A current asset account which contains the amount of investments that can and will be sold in the near future. Inventory:A current asset whose ending balance should report the cost of a merchandiser's products awaiting to be sold. The inventory of a manufacturer should report the cost of its raw materials, work-in-process, and finished goods. The cost of inventory should include all costs necessary to acquire the items and to get them ready for sale. Supplies: A current asset representing the cost of supplies on hand at a point in time. The account is usually listed on the balance sheet after the Inventory account.