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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 the good qualities of good individuals?
This is a very opinionated question and will very from person to person based on their own preferences.
But in general, a need to be skeptical, a good scientific background, and a willingness to find the truth(strong sense of curiosity and determination) are all essential qualities to be a good researcher.
If a company purchase equipment on account What is the assets here?
The asset account will be Equipment. You will debit this account to increase its value.
The credit side of this transaction will be Accounts Payable. This transaction will increase the value of Accounts Payable, as well.
When debit note and credit note issue?
A debit note is a note indicating the amount owed by a person or company. It serves the same purpose as an invoice.
A credit note is a form or letter sent by a seller to a buyer stating that a certain amount has been credited to the buyers account. Also called a Credit Memo, and are issued when there is a mistake or return of merchandise.
The issuing of a credit note may be because of they were not given the correct discount, the item or purchase didn't meet the customers expectation and they returned it. Those are only a couple of example.
Explain in a simple way what does debit and credit mean?
The literal definitions of Debit and Credit in financial accounting are
Debit. (1) The left side of the account. (2) the amount entered on the left side of an account. (3) To enter an amount on the left side of an account.
Credit, same as above only it is entered on the RIGHT side of the account.
A percentage or dollar amount that is added to an overdue account receivable is considered a?
percentage of sales
What do you mean by account receviable?
An account receivable is the account used by a company to record money owed to them by a customer or other entity that will be paid in a short period of time, less than a year.
For example, a company sales a computer to a customer and the customer is going to pay the company in 30 days, the company records this transaction to accounts receivable and revenue (income).
What are the differences between dividend and expense accounts?
Dividend account is the account used to record money paid on stock such as common stock, this comes out of retained earnings.
Expense accounts are expenses that the company has to maintain operation and come out of Revenue, before dividends are calculated. A company may choose to not pay dividends on stock for a year (or so) if the company's retained earnings do not meat a certain amount.
Made a payment with moneygram moneyorder how do you know they cashed it?
Call the number on the back of your money order receipt.
What is fifth third prox payment terms?
To put this simple.. usually (you can double check with the company) when an invoice is put in these terms it means that the amount owed is due by the 3rd of the following month, but the company is allowing until the 5th to receive payment. This is two extra days before they begin to charge late fees.
5th 3rd prox means you pay the invoice on the 5th day of the 3rd month following receipt of the invoice. The average is 83 days.
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)
The answer to the comprehensive problem 1 of College Accounting 19th edition Heintz and Parry?
Just work the problem. There are several steps, not just one simple answer
What are the advantages and disadvantages of LIFO and FIFO in accounting?
LIFO (Last In First Out) is generally used for non-perishables so there is less need to physically move the inventory, while FIFO (First In First Out) is used for perishables because it decreases loss due to spoilage.
Explain Petty Cash Transactions?
Petty cash transactions are small, miscellaneous purchases or expenses. In business, there is usually a separate cash fund for this type of transaction.
Debiting the cash account will increase the account?
Yes, debiting a cash account means it increases.
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.
What are accounts receivables and accounts payables?
Accounts receivables are the money that is owed to a business, accounts payables are the invoices or bills that a company has incurred and must pay to their vendors or suppliers.
A/R Accounts Receivables means that people owes you money, when you sell products or service and they have to pay in 30 days, 45 days, etc., So for example: If we sell $500 in goods or service and in the transition of 30 days, our A/R equals to $500. But if they pay in cash, our accounts receivable is $0, for accounts receivable definitions
http://www.burtcollect.com/blog/accounts-receivable/
Accounts Payable is the amount that you have on credit with another company. For Example let's say XYZ Company purchases a pallet of salt bags from ABC Company for $450 on credit. The XYZ Company would have have a Accounts Payable Account setup with ABC Company.
CESS is a synonym for tax, duty, fee, etc.
When tax is applied to income, its called INCOME TAX...
When tax is applied to goods, its called DUTY, say, EXCISE DUTY, CUSTOMS DUTY, etc...
When tax is applied to a particular purpose, its called CESS, say, EDUCATION CESS, HIGHER & SECONDARY CESS...
What are the topics covered in management accounting?
Objective: This course aims at introducing the student to how useful accounting information is prepared, and how it is effectively used, for the purpose of decision-making.
Course content: Overview and introduction to management accounting Cost Concepts, Classifications, Terminology and behavior, Job costing and Activity Based Costing, inventory Costing and Capacity Analysis, Cost-Volume-Profit Analysis, Short-term Decision-Making and Relevant Costing, Long-term Decision Making, Pricing Decisions, Master Budget and Flexible Budgeting and variance analysis.
Are current liabilities payable in 1 year?
Yes, which means I am going to have to go back and change some of my answers. Accounts Payable are accounts that will be paid in one year OR LESS! This has obviously been changed, as it used to be considered "current" if it was paid in 6 Months or LESS.
Any Account Payable or Account Receivable (Account Receivable being an Asset) that will be fully paid in 1 year or "less" I do stress less, is considered a "current liability" or "current asset", anything over that one year mark, even if it's 13 months, is considered "long-term".
yes
Three accounting issues associated with accounts receivable are?
Recognizing, Valuing , and Disposing
What type of assets are capital assets and how do they differ from current assets?
Capital assets, also referred to as capital goodsand plant, property and equipment, are a kind of non-current asset. The main purpose of these assets is generating revenue for an entity by being used for one or more purposes. An example of a capital asset is a delivery truck used by a delivery firm; the truck helps to generate revenue for the firm as they use it to provide delivery services. A firm does not sell capital goods to generate revenue (as they would sales stock), and they may keep them many years.
Current assets are assets that are expected to be used or turned into cash by the end of the reporting period. This includes sales stock (which is expected to be sold, at least in part, by the end of the reporting period), and bank (which the entity is likely to spend cash from within the reporting period). Capital assets are not current assets, as they are not expected to be turned into cash or used up within the reporting period.
