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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 common audit procedures for accounts receivable?
* Perform a positive trade receivables circularisation of a representative sample of client's year-end balances, for any
non-replies, with client's permission, send a reminder letter to follow up.
* Review the after date cash receipts and follow through to pre-year-end receivable balances.
* Calculate average receivable days and compare this to prior year, investigate any significant differences.
* Review the reconciliation of sales ledger control account to the sales ledger list of balances.
* Select a sample of goods despatched notes (GDN) before and just after the year end and follow through to the sales
invoice to ensure they are recorded in the correct accounting period.
* Inspect the aged receivables report to identify any slow moving balances, discuss these with the credit control manager
to assess whether an allowance or write down is necessary.
* For any slow moving/aged balances review customer correspondence to assess whether there are any invoices in
dispute.
* Review board minutes of client to assess whether there are any material disputed receivables.
* Review a sample of post year-end credit notes to identify any that relate to pre-year-end transactions to verify that they
have not been included in receivables.
* Review the sales ledger for any credit balances and discuss with management whether these should be reclassified as
payables.
* Select a sample of year-end receivable balances and agree back to valid supporting documentation of GDN and sales
order to ensure existence.
* Trace a sample of shipping documents to the sales journal to determine that shipped goods were recorded as sales and to the accounts receivable subsidiary ledger to determine that shipments were recorded as receivables.
* Account for the numerical sequence of shipping documents and sales invoices to determine that all sales were recorded.
What are Advantage to creditor in case of note receivble than an ordinary account receivable?
What are Advantage to creditor in case of note receivble than an ordinary account receivable?
Read more: What_are_Advantage_to_creditor_in_case_of_note_receivble_than_an_ordinary_account_receivable
Explain the differences between financial accounting and Management Accounting?
Management accounting is a tool that managers use to perform day-to-day operations in an organization. This type of accounting usually does not provide exact numbers, but rather estimate and forecast. Financial accounting is a tool used to present the financial status of the organization to its external stakeholders. This type of accounting provides accurate numbers.
Avg Collection Period increases.
Tasks duties of accounts receivable clerk?
Some tasks and duites of an Accounts Receivable clerk include:
- Perform the day to day processing of financial transactions to ensure that municipal finances are maintained in an effective, up to date and accurate manner:Main Activities: Receive and verify invoices and requisitions for goods and services, Verify that transactions comply with financial policies and procedures, Prepare, verify, and process invoices and coding payment documents, Prepare batches of invoices for data entry, Data enter invoices for payment, Process backup reports after data entry, Manage the weekly cheque run, Record all cheques, Prepare vendor cheques for mailing, List all vendor cheques in the log book, Prepare manual cheques as and when required, Maintain listing of accounts receivable and payable, Maintain the general ledger, Maintain updated vendor files and file number, Print and distribute monthly financial report.
- Complete payroll functions in order to ensure that staff are paid in an accurate and timely manner: Main Activities: Establish and maintain confidential casual employee files, Process TD1 forms, calculate salaries and benefits, verify pay amounts, hours of work, deductions, verify coding and obtain signatures, Batch pay sheets for data entry, data enter payroll information, log in and distribute pay cheques, Prepare and remit source deductions and payroll tax
- Provide administrative support in order to ensure effective and efficient office operations: Main Activities: Maintain inventory files, monitor and order office supplies, prepare purchase orders, prepare travel and accommodation warrants and travel advances for staff, review and verify travel claims, maintain a filing system for all financial documents, ensure the confidentiality and security of all financial and employee files.
- Provide receptionist services:Main Activities: Greet and assist visitors, Answer phones, direct calls and respond to inquiries, Collect money and provide receipts.
What does 31 days nett payment mean?
It's a payment term meaning: payment due 30 days from the end of the month in which the invoice is raised.
Can a massage therapist charge a client interest for unpaid massage therapy treatments?
Sure. It is a standard business practice to charge interest on an outstanding balance. This is very similar to the interest credit card companies charge you when you only pay part of your balance. Though most massage therapists are compassionate and understand that their clients can have financial difficulties. Even though they have the right to charge interest, it would be more compassionate not to do so. People that get massages are already under a quite a bit of stress from their daily interactions, it would be nice to have a haven of healing and compassion where they did not have to worry about interest on unpaid bills. I personally would not charge interest.
What jobs can you get with as A.A.S degree?
What jobs can you get with an AAS degree in child education
The Formula of Breakeven point (in units)= Fixed Cost / Contribution per unit
How do you prepare debtors aging analysis?
1st 30/60/90/120 days, 2nd by amount in quickbooks, peachtree, or excel
A payment voucher is an alternative way of paying for something without actually exchanging money. The voucher is paid for ahead of time and specifically states what it will cover when surrendered.
Accounts Payable related all information how to do the accounts payable?
Basically there are various methods of accounts payables and differ from company to company. most of the petty cash expenses are paid in cash and other payament is made through cheques.
What is an account receivable?
account receivables reflects those amount which the company has sold and payment for that sold items has not yet recieved so that amount will be booked as account recievables
What is the major difference between unadjusted trial balance and trial balance?
unadjusted will not have your final entries for that period. some of those entries may be accrued revenues or expenses, depreciation, and balancing entries.
the adjusted balance is your final balance after all adjustments are made.
What is the pay rate for bookkeeper?
A qualified Bookkeeper's pay rate can vary from state to state and city to city. In New York the rate can be anywhere from $35-55 p/h. Seattle $25-35 p/h and in Honolulu $30-40 p/h. Keep in mind this is not an entry level pay rate. Education from an accredited University, experience with 8-10 years minimum and experience should come from a varied of fields for this rough draft pay scale.
Duties of assistant accountant?
The assistant accountant provides support to the accountant by preparing and filing returns and reports. The assistant also supports the accountant in other administrative functions.
Solution to accounting principles 7th ed Kieso?
2013
january
01
started a business with RM5000 cash
03
bought Office Equipment RM1000 cash
05
add capital RM5000 in the bank
12
paid one year insurance RM900 with cheque
14
paid Rental RM800 cash
17
received bill from Borneo Express for advertising expenses RM200
21
took cash for Personal used RM500
24
Goods sold with the amount RM2000 cheque
27
paid(Saiful RM800 and Mohamad RM1200) salary with cheque
What is the reason that prepare trial balance?
any difference between the credits and debits that shows up in a trial balance is nothing more than a posting error that took place some time during the time period under consideration. When that is the case, the error can usually be spotted with ease and a state of equality restored between the debits and credits.
A trial balance is especially effective in helping to identify a double entry posting error. Often, the difference between the credits and debits will quickly lead to a specific posting that may have been erroneously entered in two different columns or accounts within the overall set of books.
At the same time, the trial balance may indicate an inequality that was created by entering a credit or debit into the wrong account. When this is the case, finding the error may be a little more time consuming, as it will involve reviewing each posting for the period cited and confirming the posting took place in the right account and under the correct classification.
Running the trial balance is usually a precursor to the preparation of other financial documents, such as and Income and Expense Statement. By making sure that all debits and credits posted during the period are correct, preparing reports and other documents based on the accounting data is easier to accomplish.
What is the difference between invoice and proforma invoice?
An invoice is basically a receipt you get at the time you take possession of an item you purchased. A pro forma invoice is one that is sent to a buyer before they will actually receive their purchase.
Distinguish between cost accounting and financial accounting?
Financial accounting is the process of preparing financial statements using data and figures. Cost accounting is similar but you look for alternative ways to figure these figures and data.
