Different Industries Have Different Types of Assets and Use Different

question 21

Essay

Different industries have different types of assets and use different types of financing. How are net fixed assets financed for a company in (1) the hotel industry, (2) the retail grocery industry, and (3) the computer manufacturing industry?

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Definitions:

Deposits In Transit

Funds that have been sent to a bank but not yet recorded by the bank in the account holder's bank statement.

Outstanding Checks

Checks that have been issued by a company but have not yet been cashed or cleared by the bank.

Petty Cash

A small amount of cash on hand used for minor or incidental expenses within a business.

Normal Balance

The side (debit or credit) of an account that is expected to have a greater balance based on standard accounting practices.