CPA

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CPA Exam - FAR Terms with well elaborated definitions Cash - Money that is FREE and CLEAR and available to be spend in current operations. Not Cash: - Security deposits & bond sinking funds Three-Month Rule - Highly liquid securities with ORIGINAL maturity dates of three months or less are treated as cash. Bad Debts - Direct Write-Off Method - - No entry for bad debts until customer actually defaults. - At default, the cutomer's account is written off. - Theoretically weak, matchin...

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