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Treatments of bad debts in financial accounts:-
A. Revenues should be reported net of discounts and allowances with the discount amount parenthetically disclosed on the face of the statement or in the notes to the financial statements. Alternatively, revenues may be reported gross with the related discounts and allowances reported directly beneath the revenueamount.
B. Provision must be made for bad debt estimates each year. Tuition and fees should be reported net of allowances and discounts. As such, increases in allowances for bad debts are recorded as a reduction in revenues rather than anexpense.
C. With regard to the presentation of the provision for bad debt estimates taken as a reduction of tuition and fee revenue, this should be deducted from the gross tuition and fee line item and should not be separately displayed on the face of the statement. This treatment is different than scholarship allowances which are required to be disclosed either on the face or in the notes to the financial statements.
Wiki User
∙ 13y ago
Wiki User
∙ 11y agoTreatments of bad debts in financial accounts:-
A. Revenues should be reported net of discounts and allowances with the discount amount parenthetically disclosed on the face of the statement or in the notes to the financial statements. Alternatively, revenues may be reported gross with the related discounts and allowances reported directly beneath the revenueamount.
B. Provision must be made for bad debt estimates each year. Tuition and fees should be reported net of allowances and discounts. As such, increases in allowances for bad debts are recorded as a reduction in revenues rather than anexpense.
C. With regard to the presentation of the provision for bad debt estimates taken as a reduction of tuition and fee revenue, this should be deducted from the gross tuition and fee line item and should not be separately displayed on the face of the statement. This treatment is different than scholarship allowances which are required to be disclosed either on the face or in the notes to the financial statements
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What is matching concept?
while preparing final accounts, accounts should show accruals and prepayments.the net amount for the financial year should be shown in the final accounts
What does a Schedule of Accounts Receivable show?
the schedule of accounts receivable shows
What does a schedule accounts receivable show?
the schedule of accounts receivable shows
Why final accounts are important to all of the busienss?
Final accounts and balance sheets help investors make sense of a company's financial condition. They show financiers whether the business is forthcoming with performance data, how it intends to marshal its resources to pound the competition, and the steps it is taking to repay its long-term loans and avoid lender exodus.
An open accounts payable report will show?
monthly reconciliation
What is matching concept?
while preparing final accounts, accounts should show accruals and prepayments.the net amount for the financial year should be shown in the final accounts
Is bad debts account a balance sheet item or income statement?
It depends on how you have already treated the bad debt in the accounts, if you've already either written the debt off or fully provided for it then the recovery of the debt will be a P&L transaction (income statement)
What does a Schedule of Accounts Receivable show?
the schedule of accounts receivable shows
What does a schedule accounts receivable show?
the schedule of accounts receivable shows
What happens to a debt if a person has nothing in the estate?
The executor will show the plan to the court. It will include all debts and all assets. If the debts are more than the assets, the debts will be cancelled.
If you have two accounts and one in chexsystems will the other show in chexsystems also?
No. Only the accounts that have been reported show up in the system.
Can you have two active accounts on Answers.com?
You can have as many accounts as you want on Answers.com. There is no way currently to merge accounts or show they are for the same person.
What is the mad gab solution for debts heaven dish hoe?
That seventies show.
Why companies show incorrect financial position?
To be able to borrow more better them self's in the financial world and to show there making a profit
What is Authentication of accounting records?
The authentication of accounting records is to check the accounts prepared by a company and report as to whether or not they show a true and fair view of a company's results for the year and its financial position at the end of the year. When the accountant has completed his work he must prepare a report containing the opinion he has formed. In simple cases he will be able to report that he carried out his audit work and that, in his opinion, the accounts show a true and fair view and are properly prepared in accordance with the relevant ordinance. In simple Authentication of accounting records defined as "a formal examination, correction, and official endorsing of financial accounts, especially those of a business, undertaken annually by an accountant".
Why final accounts are important to all of the busienss?
Final accounts and balance sheets help investors make sense of a company's financial condition. They show financiers whether the business is forthcoming with performance data, how it intends to marshal its resources to pound the competition, and the steps it is taking to repay its long-term loans and avoid lender exodus.
An open accounts payable report will show?
monthly reconciliation
