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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.
2,500 Questions
What are differences between management accounting and strategic management accounting?
Management Accounting: The internal business building role of accounting and finance professionals who work inside organizations. These professionals are involved in designing and evaluating business processes, budgeting and forecasting, implementing and monitoring internal controls, and analyzing, synthesizing, and aggregating information-to help drive economic value. Strategic Management Accounting:
An advanced form of management accounting that attempts to include information about an entity's competitors in the reports prepared for the internal management of the entity.
If your from your from wbs Abuja I am trying to find the newer to the question
Which of these best describes the invoice price of a vehicle?
the manufactures initial charge to the dealer
Is accounts receivables considered an asset?
Yes. Accounts receivable, or receivables for short, represent a financial obligation to the organization and are represented on the asset side of the balance sheet.
What is the difference between an accrued and a provision?
i must say accrued and provision is two different things,accrued is something paid to you but you can spend it,concerning provision is not the same.
Payments of accounts payable will have what affect on total assets?
Making a payment on an account payable will decrease cash. At the same time it will also decrease your liability for that same amount.
What are the steps in preparing a trial balance?
The trial balance is a worksheet on which you list all your general ledger accounts and their debit or credit balance. It is a tool that is used to alert you to errors in your books. The total debits must equal the total credits. If they don't equal, you know you have an error that must be tracked down.
In a trial balance you list all
Assets
Liabilities
Owners Equity (Stockholders Equity)
Basically you use your accounts from your General Ledger.
What is an account payable on a trial sheet?
Accounts payable are ALWAYS listed as a Liability. It is money the company OWES and therefore is a liability to that company.
What is the difference between bills receivable and debtors brief explaination and few examples?
Debtors are those people to whom we have made sales and now amount need to be received but sometime debters issue bills to use them until received money from them which is called bills receivables.
Example:
we sold goods to mr. a for $ 5000 on account and mr. a issue bill for $ 5000 so now until mr. a don't pay us if we need money we can use that bill to discount from bank and get money and at the time of payment now mr. a will pay to the bank and get back that bill from bank.
What is another name for cash received for goods or services?
Depending on the company the terms may be...
Revenue, Income, Sales
At what point current asset become non current asset?
Current assets are assets that can be turned into cash quickly and easily. Cash in the bank of course being the most Current possible. Other Current Assets are things such as Account Receivable.
A point where an Account Receivable may turn into a Non-Current Asset is if the person/company that owes you is unable to fulfill their obligations and pay off the balance in one year or less. If this is the case and payment for the account receivable is going to be stretched into more than a year, that current asset is then listed as a Non-Current Asset, usually a Note Receivable.
What does net 15 payment terms mean?
Net 15 means that the balance is due in 15 days after the date of the invoice.
Net 30 means that the balance is due in 30 days after the date of the invoice.
The number after the net indicates the days after when the invoice was printed that the balance is due.
Is bank loan a current liability?
That depends on the term of the loan. Let's define Current Liability and Long-Term Liability
A current liability is any liability that will be paid off within one year (or less) or one accounting cycle. A bank loan, if is financed for One Year or less, would be classified as a Current Liability.
A Long-Term Liability is anything OVER a year. So if the bank loan is financed for more than one year, it will then be classified as a Long-Term Liability.
What is the difference between long term liabilities and current liabilities?
Long-term liabilities are generally considered to be those debts that will not mature (or come due) for over a year. Current liabilities are generally considered to be those obligations that come due within the year.
Current liabilities do; however, include more than just debt. Generally current liabilities will include anything that must be paid within the next year that is not directly related to the costs of production (because the company could stop producing widgets, but would still have to make lease payments, etc.).
Companies with long-term liabilities whose payments include principal will occasionally show the principal portion of the long-term liabilities that will be paid in the current year within the current liabilities (and remove those principal payments from the long-term liabilities).
Payment of accounts payable will have what effect on total assets?
Payment of account payable will reduce the total assets. When you pay your bills, you take money out of your account.
What is the journal entry for dividends receivable?
Dividend receivable Debit
Cash dividend Credit
Cash Debit
Dividend receivable Credit
What exactly is accounts receivable and accounts payable?
Account Receivables are the right to claim against the sale of goods made by any business. It is merely concern with the sale of primary business product.
Account Payables are the obligation to pay for the goods purchase with the intention to resale or to use in manufacturing of goods to sell.
Debts owed by a business are referred to as?
Debt held by businesses is called Business debt.Liabilities of the business.
What are the roles of an invoice?
An invoice serves as a legal document verifiying the balance paid and/or owed fo a product or service to be paid by the customer.
What is accounts payable non trade?
Accounts payable non-trade is an entry that is made through a journal entry. Most accounts payable are trade and they are done through an accounts module that will automatically generate accounting entries.
What is the difference between management accounting financial accounting and cost accounting?
Management accounting is concerned with the provisions and use of accounting information to managers within organizations, to provide them with the basis to make informed business decisions that will allow them to be better equipped in their management and control functions.
Financial accountancy (or financial accounting) is the field of accountancy concerned with the preparation of financial statements for decision makers, such as stockholders, suppliers, banks, employees, government agencies, owners, and other stakeholders. The fundamental need for financial accounting is to reduce principal-agent problem by measuring and monitoring agents' performance and reporting the results to interested users.
Cost Accounting - In management accounting, cost accounting establishes budget and actual cost of operations, processes, departments or product and the analysis of variances, profitability or social use of funds. Managers use cost accounting to support decision-making to cut a company's costs and improve profitability.
Revenues from credit sales may be earned before they are collected in cash do you agree?
Yes, if the product or service is rendered to the customer and said customer has not paid the amount, the revenue has been earned, not collected, to record this transaction you would Debit Accounts Receivable (to show that the service or product has been rendered) and Credit Revenue (income). Once payment is received, then to show money has been collected, you Debit Cash and Credit Accounts Receivable (you no longer have to touch your sales/revenue account as the amount is already listed as being earned).
