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How does accounts receivable factoring work. What are the benefits to the two parties involved. What are the risks?
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Two categories of expenses for merchandising companies are?
C.O.G.S. (Costs of Goods Sold) and Operating Expenses.The normal operating cycle of a service company includes the following steps :1. Perform services. 2. Accounts Receivable 3. Get cashThere are no goods involved. Only a service has to be performed,...
What is the journal entry of accounts payable?
debit purchasescredit accounts payable*For purchases (supplies, office materials, etc.) on accountPurchases xxAccounts Payable xx*During payment of purchases on accountAccounts Payable xxPurchases xxNOTE: Journal entries depends on the accounts involved, like: Taxes, discounts and other stuffs. ^^
Concept of the time value of money?
Time value of money concepts dictates that amount recieved today is not equal to amount receivable at some future time and some amount sometimes interest which is the value of time involved with that money.
Why does the federal government freeze accounts?
The federal government usually freezes accounts of people who are suspected to be involved in illegal activities like Terrorists or Drug Dealers. This is done to ensure that such anti-social elements do not get free and easy access to banking facilities.
How do you record GST receivable after receiving GST refund from govermetnt?
When recording a GST receivable after receiving a GST refund from the government, you need to follow certain accounting practices. Here is a general overview of the steps involved: 1. Determine the Amount of the GST Refund: Calculate the exact amount of the GST refund received from the government. This amount will be recorded as a receivable on your books. 2. Create an Accounting Entry: Record the GST refund as a receivable in your accounting system. The specific accounts you use may vary depending on your chart of accounts, but typically, you would debit the GST Receivable account and credit the corresponding bank or cash account. 3. Document the Transaction: Maintain proper documentation of the GST refund received, including any supporting documents provided by the government. This documentation is important for audit purposes and to support the recorded transaction. 4. Reconcile the Receivable: Periodically reconcile your GST receivable account to ensure accuracy. This involves comparing the recorded receivable balance with the supporting documents and confirming that they match. 5. Monitor and Apply the Receivable: As your business makes subsequent taxable sales, monitor the GST receivable account and apply the credit against future GST payable amounts. This ensures that the refund is appropriately offset against your future GST liabilities. 6. Adjust for Timing Differences: It's important to consider any timing differences between the refund received and the corresponding sales that generated the GST payable. Adjustments may be necessary to align the refund with the appropriate reporting period and ensure accurate financial reporting. 7. Consider the Tax Treatment: Depending on your jurisdiction and the specific nature of the refund, there may be specific tax treatments to consider. Consult with a tax professional or review applicable tax laws to ensure compliance with any special rules or regulations. Remember, it's crucial to consult with a qualified accountant or tax professional who is familiar with the tax laws and regulations in your jurisdiction. They can provide guidance tailored to your specific situation and ensure that you accurately record and account for the GST refund received. Structured Learning Assistance - SLA is known for its excellence in education sector who provides best GST Certification Course with best trainer & advanced lab facility.
What is involved in full service factoring?
Full service factoring is where 100% of debtor risk is covered and provides the whole debtor factoring in regards to sales ledgers and collection as well as financing.
What skills are involved in small business factoring?
Factoring is a necessary option if you want to start a small business. There is high demand for the job and skills include being able to factor and manage the workspace.
Two categories of expenses for merchandising companies are?
C.O.G.S. (Costs of Goods Sold) and Operating Expenses.The normal operating cycle of a service company includes the following steps :1. Perform services. 2. Accounts Receivable 3. Get cashThere are no goods involved. Only a service has to be performed,...
Who benefits of mutualism?
parties who are mutually involved.
Who benefits mutualism?
parties who are mutually involved.
Basic definitions of accounts?
The Chart of Accounts is really a list of "descriptions" used to describe the elements and events involved in financial transactions.
Do you need letters of administration when no property is involved only bank accounts?
Access to the bank accounts require authorization. The letter of administration give them that right.
What did Avril Lavigne do that Canada benefits from?
She did something that involved something or someone
Why do you need a lawyer when you are involved in a bus injury?
When you are involved in a bus injury, you need a lawyer to determine whether or not you are entitled to benefits and to maximize those potential benefits. You can find lawyers for this need at the official Lawyers website.
What were the benefits of the Australians getting involved in world war 1?
they weren't fighting
What will be done when the benefits of a cleanup are greater than the risks involved?
Cleanup will begin.
Where can one find information about FDIC insured savings accounts?
Any bank can give you information about FDIC insured savings accounts. Most deposit accounts are insured. Check at your local bank or online to see if there is a fee involved.
