Accounts Receivable

Accounts receivable represents the money owed by clients to an establishment for the sale of products and services, which must be paid within an agreed timeframe. It is commonly executed by generating an invoice and delivering it to the customer.

3,677 Questions
Banking
Accounts Receivable

What does TRF mean on a bank statement?

what TRF satnds for

778779780
Economics
Business Accounting and Bookkeeping
Accounts Receivable
Financial Statements

What are the 4 functions of accounting?

  1. For money
  2. For peace and order
  3. For nice environment
  4. For Good Will

Sorry to say but the above answer is completely misleading and incorrect. The major functions of accounting are

1. recording business transaction

2. Classifying and summarizing business transactions in a meaningful manner

3. Analysing and interpreting data in order to retrieve meaningful information.

4. Communicating the information to the relevant stakeholders

338339340
Business Accounting and Bookkeeping
Accounts Payable
Accounts Receivable
Budgeting and Forecasting

Example of operational audit?

purchase, marketing, selling and distribution expenses, production

352353354
Business Accounting and Bookkeeping
Accounts Payable
Accounts Receivable

Is account payable an inflow or outflow or neither?

The recording of an account payable does not create any current effect on cash flow, so it is neither creates an inflow or outflow.

341342343
Accounts Payable
Business Finance
Accounts Receivable

What does 30 days net monthly mean?

It's a payment term meaning: payment due 30 days from the end of the month in which the invoice is raised

333334335
Business & Finance
Accounts Payable
Accounts Receivable
Budgeting and Forecasting

What do you mean by process costing?

Process Costing is the accounting of those industries which are involved in those products production which has no specific or clear start of fiscal year or accounting year because they are continuously involved in producing products like textile industries or manufacturing industries. In these industries work is done in more then one departments and products have to go through many departments to complete and in this process each department don't know how much cost they have incurred on that product to complete and as that product is complete in more then one department so it is not possible to allocate all costs and revenues to one department so process costing is used to continuously calculate that how much cost is incurred in which department so that the revenues and responsibilities are also allocated to those departments accordingly.

315316317
Accounts Receivable

What does terms net 10 eom means?

EOM stands for "end of month".

Net 10 EOM means that the net amount of the account is due 10 days after the end of the month which the sale was made.

Eg. Customer buys $25,134 worth of merchandise from your store on 14th July.

N10 EOM credit terms means that this account must be paid by the 10th June.

Hope that helps

Edit: I believe in the example that the original poster meant 10th August as the pay date as 10th June would be roughly 11 months after purchase.

311312313
Taxes and Tax Preparation
Sales Tax
Accounts Receivable

How do you journalize a sales tax payable?

Since you are using a "payable" account we do "not" touch cash until the actual payment is made. We however still know we need a debit and a credit for this transcation. To put this in our journal we will

Debit Sales Tax Expense (check your company for exact account name)

Credit Sales Tax Payable (again check your company for account name)

Once you pay your taxes then you have to adjust these entries to reflect payment. In order to do that, we again use two accounts, this time however we do not touch Sales Tax Expense, it must stay there until we close our out books, we do however have to show that the payable has now become paid and that we no longer have that amount of cash on hand. This transaction will be adjusted in the journal as

Debit Sales Tax Payable (to zero out this account or adjust it accordingly)

Credit Cash (to show we no longer have that amount of cash on hand)

305306307
Business Accounting and Bookkeeping
Accounts Payable
Accounts Receivable

Is temporary overdraft a current liability?

Yes. An overdraft simply means that the bank has paid an item that was presented against your bank account and represents, essentially, a short term loan from the bank to you. Like any other short term obligation, it is a current liability.

297298299
Accounts Payable
Accounts Receivable

What does it mean to advance the payment due?

To put it simply, it is a way of telling you to pay them the money you owe.

289290291
Business and Industry
Accounts Receivable
Budgeting and Forecasting
Business Taxes

Examples of the documents used in banks?

1.pay in slip

2.withdrawal slip

3.cheque

4.pass book

5.fdr

6.account statement

7.demand draft

8.draft requisition form

109110111
Business Accounting and Bookkeeping
Accounts Receivable

Is short term debt the same as current liabilities?

Current liabilities are liabilities that are due within 12 months. Short term debt is a current liability. However, there are other current liabilities. For example, taxes payable, interest payable, wages payable, accounts payable.

Therefore, short term debt is not the same as current liabilities.

(Short term debt is a current liability, but not all current liabilities are short term debt.)

281282283
Teaching Resources
Accounts Receivable

Where can i download Test bank for kieso intermediate accounting 12th ed updated?

265266267
Business Accounting and Bookkeeping
Accounts Receivable
Financial Statements

If the assets of a business are 107K and the owner's equity is 75K does the owner's investment equal 182K?

In pure accounting terms Assets - Liabilities = Owner's equity. That means that if you have 107k of assets and 75k of OE, you have 32K of liabilities.

Good accounting answer...in general terms, count up what you own (Assets), subtract what you owe(liabilities) and that is what you are worth (equity), so if you own 107K and are worth 75K, then you owe 32K.

I agree with the above, and the basics of Accounting provided.

But it addresses what the owners equity is -- that is the amount of value on the companies books after all claims are made/paid.

The question asks what is the owners investment equal to. That is almost always different than owners equity. The owners investment is viewed from the owners side bookkeeping, not the business side. It is entirely possible to buy stock in a company for say $100...that is the owners investment....it doesn't change based on anything to do with the books or operations of the company - since he isn't investing more (or taking anything out - barring dividends and such for the moment).

Say then the company has good (or bad) fortunes (or the stock market and investment marketplace changes)...and he sells his investment for a different amount...the difference is the gain or loss on the owners investment.

The owners equity portion of the business books could have gone up, down (or stayed the same). Same holds true if it was 100% of the biz instead of just some portion of stock in it.

So in the question above, we don't know what the owners investment is, nor can we determine it from the companys books and records.

204205206
Business Accounting and Bookkeeping
Accounts Payable
Accounts Receivable

What is an effective system for managing accounts payable and receivable and a monthly operating budget?

AnswerI use MYOB booking system. (Mind your own business.) It can be purchased online or any good computer store.

Another good accounting software system is quickbooks or Peachtree. These are the two accounting software packages that most businesses uses.

194195196
Business Accounting and Bookkeeping
Accounts Payable
Accounts Receivable

What is difference between advanced accounting and cost accounting?

ADVANCED ACCOUNTING covers accounting operations, patterns, merger of public holding companies, foreign currency operations, changing financial statement ...

Cost accounting:

A type of accounting process that aims to capture a company's costs of production by assessing the input costs of each step of production as well as fixed costs such as depreciation of capital equipment. Cost accounting will first measure and record these costs individually, then compare input results to output or actual results to aid company management in measuring financial performance.

175176177
Business Accounting and Bookkeeping
Accounts Payable
Accounts Receivable

When confirming accounts payable emphasis should be put on what kind of accounts?

Vendors that the company has made a large number of purchases from (in terms of dollar value). The account balance does not matter.

179180181
Business Accounting and Bookkeeping
Accounts Payable
Accounts Receivable

What is the difference between total current assets and total current liabilities is?

the difference between total current assets and total liability is the working capital. It goes with a formula 'current asset -current liability =working capital '

123
Business Accounting and Bookkeeping
Accounts Payable
Accounts Receivable

Why is Cost accounting a subset of management accounting?

The main purpose of cost accounting is to provide management with financial information necessary to make business decisions. Cost accounting focuses mainly around cost variances, budget analysis, etc.

Financial accounting on the other hand ensures that information being reported to outside investors/users is accurate and in compliance with a given financial reporting framework.

Hope this helps...

177178179
Business Accounting and Bookkeeping
Accounts Payable
Accounts Receivable

Difference between account receivable and notes receivable?

An account receivable and a note receivable both refer to money that is owed to you/your company by another person/company. Both can be current assets or long term assets. However, the difference in the two is:

A Note Receivable has some form of contract signed, [i.e. promissory note etc.] while an account receivable does not. A note receivable is generally paid out at equal interval payments and generally carries interest, while an account receivable can carry interest it generally does not.

168169170
Business Accounting and Bookkeeping
Accounts Payable
Accounts Receivable

What is the difference between cost accounting management accounting and financial accounting?

S.No.

Basis

Cost Accounting

Financial Accounting

1.

Scope

It is suitable only for such business concerns which are engaged in manufacturing, production, mining or providing some service (e.g. bus company electric supply company etc.)

It is suitable for all businesses - manufacturing, production or even in marketing only.

2.

Pre-determined and historical accounting

In cost accounting, the expenditure to be incurred is estimated and standard cost of product is found. Thus, it act as a pre-determined process.

In Financial accounting, accounting is done after the expenditure has already been incurred and not prior to that. So it is historical accounting.

3.

Nature of transactions

Transactions related with production activities only are accounted for in this method. Donations, dividend received, etc. are not taken into account as these are not related with production.

All economic transactions are taken into account, whether these are related with production or not.

4.

Selling price

By cost accounting the price of the product can be fixed more accurately in a scientific manner.

In the absence of information about cost, the selling price fixed by this method may be misleading.

5.

Profit & Loss

Profit calculated by this method expresses the result of production activities.

Profit calculated by this method expresses the profit of the organization.

6.

Information about cost

Full and correct information about the cost, per unit cost, various elements of cost, etc. of the product is made available in cost accounting.

Financial accounting does not give such detailed and correct information.

__________ Abhishek Karagwal, Chairman Stallions Pvt. Ltd

Contact me at : abhi541@hotmail.com

ph: 07737816441

145146147
Definitions
Business and Industry
Accounts Payable
Accounts Receivable

What is the definition for sundry debtor?

SUNDRY - Miscellaneous small or infrequent customers that are not assigned individual ledger accounts but are classified as a group.

SUNDRY CREDITORS - refers to companies or individuals to which money is owed.

SUNDRY DEBTOR - is an entity from who amounts are due for goods sold or services rendered or in respect of contractual obligations. Also termed: debtor, trade debtor, and account receivable.

656667
Business Accounting and Bookkeeping
Accounts Payable
Accounts Receivable

Is stationery a liability?

From a bookkeeping point of view Stationary is a separate account from everything else and when posted is usually classed as an Asset ot a Liability.

137138139
Business Accounting and Bookkeeping
Accounts Receivable

How are the customers in the accounts receivable ledger arranged?

Typically, you would arrange them alphabetically or by customer number. But you could use any other method that makes sense in your billing/collection/accounting procedures. For example, you might want to arrange them geographically (for sales tax or currency reasons), you might want to separate the business clients from the private individuals. If you offer different credit terms to different clients, you could arrange them accordingly.

234
Accounts Payable
Accounts Receivable

Disadvantages of computerized accounting?

Often times people will assume the computer is doing things correctly and problems will go un-checked for long periods of time. Also computers need electricity, are prone to viruses, are delicate and expensive. Given these drawbacks most people in modern countries feel the benefits far outweigh the negatives.

123124125

Copyright © 2020 Multiply Media, LLC. All Rights Reserved. The material on this site can not be reproduced, distributed, transmitted, cached or otherwise used, except with prior written permission of Multiply.