Financial Education - Merchandise and inventories versus customer receivables

When talking about marketable securities, one must have knowledge of current assets, meaning cash and cash equivalents on hand, inventories, accounts and notes receivable from customers, accounts receivable from officers, employees, affiliated companies and others.

In other less technical interpretations, current assets are represented by accounts receivable from officers, employees, affiliated companies and others, or else current assets are cash and other resources that are expected to be converted into cash when sold or consumed during the normal operating cycle of the business.

In other words, current assets must be collectible within a certain period of time agreed upon by the legal bodies of the accounting state as a regulatory entity, as well as marketable securities that represent cash available within the structure of the accounting process established by the entity.

Among the negotiable securities there is also the cash and cash count, i.e. the documentation in custody and documents in guarantee, it is important to consider a cash count process that complies with the measures of internal corporate controls.

In short, the importance of the negotiable securities that represent the accounting structures of the companies lies in the fact that the current assets and the respective petty cash are used to perform the petty cash count, and to know the amount of money, the payment documents and the forms pending settlement.