I:Are you familiar with PRC Financial Accounting and Tax Regulations?
A:Sure.
I:OK.Can you tell me something about this balance sheet now?
A:Of course.This balance sheet contains three major sections,that is,assets,liabilities and owner's equity.So,you see,the total current 1iabilities of your company are $2,372,000,and owner's equity is $ 5,400,000.That means that the total assets,which is equal to the sum of the creditor's and the owner's equities,are $ 7,772,000.
I:Just a moment.What is the creditor's equity?
A:The creditor's equity is the same as liabilities.
I:How much are accrued salaries payable?
A:They are $ 15,000.
I:Could you tell me something about cash control?
A:Yes,of course.In accounting,cash means all items that are acceptable for deposit in a bank.
I:What are they?
A:Such as paper money,coins,checks,money orders,bank deposits and so on.
I:What should we do when dealing with cash?
A:As a rule,we should control the handling and recording of cash.Cash should be handled separately from the recording of cash transactions so that errors can be readily disclosed and the possibility of irregularities is reduced.
I:How does it work,then?
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