BASIC ACCOUNTING PRINCIPLES.

Running head: BASIC ACCOUNTING PRINCIPLES
Basic Accounting Principles
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1BASIC ACCOUNTING PRINCIPLES
Table of Contents
Cash management policy of Carrefour:...........................................................................................2
References:......................................................................................................................................3

2BASIC ACCOUNTING PRINCIPLES
Cash management policy of Carrefour:
The cash management system of Carrefour in Saudi Arabia lacks sophistication. The
sellers registered in customer purchase by issuance of a fiscal receipt include cash payment and
debit or credit card purchases into general journal. At the closure of the business day, the details
related to total merchandise amount are converted and registered in cash receipt journal and sales
journal. The balance between cash receipt journal and sales journal is the merchandise
percentage sold by debit or credit cards (Michalski, 2014). The cash is transferred usually to the
bank at the end of the day, in which it is possible to use the 24-hour ATM machine, which
accepts to receive cash or by deposit the later morning. It is quite common as well as
encouraging the utilisation of the methods of electric payment minimising the risk of keeping
additional cash in the stores.
By taking into consideration the growing popularity of online shopping, there has decline
in the business profits of the retail shops. The case is similar to some extent for Carrefour in
Saudi Arabia operating as a supermarket in the nation. However, by increasing the range of
products, the organisation has increased its popularity in the market. The buyers have to use
barcode scanners at the time of transactions, which enable the organisation to maintain perpetual
inventory system (Principlesofaccounting.com, 2019). The system is collected to back-store
clock allowing the store manager to keep the actual balance of products in stock along with
ascertaining the profile and taste of the customers. Moreover, the individual researches about the
products to maintain adequate stock in accordance with customer needs.

3BASIC ACCOUNTING PRINCIPLES
References:
Michalski, G. (2014). Value maximizing corporate current assets and cash management in
relation to risk sensitivity: Polish firms case. Economic Computation and Economic
Cybernetics Studies and Research, 48(1), 259-276.
Principlesofaccounting.com. (2019). Chapter 6: Cash and Highly-Liquid Investments -
principlesofaccounting.com. Retrieved 13 March 2019, from
https://www.principlesofaccounting.com/chapter-6/