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ACCT11081 Introductory Financial Accounting

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  • Course Code: ACCT11081
  • University: Central Queensland University
  • Country: Australia

Question:

The owners of Coffee Supreme are Chris Dillon and Maggie Wells. Chris has been a national slotcar champion in his spare time and Maggie is a quite extraordinary woman with a range of interests, including a deep love for cats (and geese). I once had dinner with a few friends at arestaurant in Wellington, New Zealand. Chris Dillon was at the dinner and he had recently spent a few weeks skiing in Canada with a few long-term friends who he first met in his early twenties; and another friend at the dinner had recently spent four weeks cruising in Antarctica; and another friend had been on a road trip on his new 880cc bike, marking his return to motorbikes after a few decades off. I had spent a fair bit of my previous few weeks writing chapters in a study guide for accounting students, sitting alone but seeking to connect and talk to many people who I have not yet met through a few written words, while sitting in a café. I love doing this. And these asynchronistic interchanges I have with others about the essential ideas about accounting is an exciting and creative experience; yet for some reason, I spent a lot of time listening to others at that dinner.
 
What do Chris and Maggie do to manage this risk of Coffee Supreme? What do they do to manage the risk of having so much money owing to Coffee Supreme at any given time from so many cafés? Well, they would no doubt set limits for how much coffee they are prepared tosupply to different coffee shops ‘on credit’ (that is, before they are paid for it) and set limits on how long they are prepared to wait until they are paid for the coffee they sell to a particular coffee shop.
 
 
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