A. What is an account receivable? What other names does it go by? Accounts receivable are amounts owed by customers on account. They result from the sale of goods and services on credit. These receivables are generally expected to be collected within 30 to 60 days. They are typically the most significant type of claim held by a company. Accounts receivable and notes receivable resulting from sales are also known as trade receivables. Accounts receivable resulting from sales are referred to
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Level of Learning: 1 9. A decrease in cash dividends payable means that dividends declared were less than dividends paid. Answer: True Learning Objective: 4 Level of Learning: 2 10. When one enters a $50‚000 credit entry to the Land account in a spreadsheet for the statement of cash flows‚ it
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should have a credit and collections policy in order to protect your accounts receivable. You probably go to great lengths to conceive (or license)‚ design‚ manufacture‚ warehouse‚ market‚ sell and ship great product. Obviously‚ these are essential to your businesses success. For without great product‚ in stock‚ how can you make sales? But a sale that doesn’t get paid is not a sale. It is a loss. Your company’s accounts receivable is a short-term asset. Along with cash and inventory is one of the
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CH. 3 HOMEWORK DISCUSSION QUESTION 3‚ 4 & 5 3.) Bill Simon says‚ “We should get rid of the FASB and SEC since free market forces will make sure that companies report reliable information.” Do you agree? Why or why not? I disagree for several reasons. One‚ investors view profits a measure of managers’ performance‚ therefore giving managers an incentive to use their accounting discretion to distort reported profits by making biased assumptions. Many top managers receive bonus compensation if they
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goods:- Consignment account (With the cost of goods) To Goods sent on consignment account (2) On payment of expenses on dispatch:- Consignment account (With the amount spent as expenses) To Bank account (3) On receiving advance: Cash or bills receivable account (With the amount cash or bill) To Consignee’s personal account (4) On the consignee reporting sale (as per A/S):- Consignee’s personal account (With gross proceeds
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1 the two key figures that gave us this indication was the high inventory turnover ratio‚ above average accounts receivable. As an online business normally inventories move fast due to the item being shipped as soon as it has been sold. In using dell computers as an example we saw a similar high turnover ratio. As being a supplier for business as well as personal computers the account receivable figure would also match
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Customers 2.3. Policy on Granting Collection on Accounts Receivable 2.4. Treatment on Uncollectible Accounts CHAPTER 3 – RESEARCH FRAMEWORK 3.1. Theoretical Framework 3.2. Conceptual Framework 3.3. Operational Framework CHAPTER 4 – RESEARCH DESIGN AND METHODS 4.1. Description of the Research Design 4.2. Data Gathering Methods and Instruments 4.3. Sample Plan Appendix Analysis of the management of accounts receivable applied by Avon Company Inc. in Angeles City as to
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Tugas 04 - Accounting for Managers Kelompok 4: 1. Haris Pratama Loeis 1306497062 2. Ibrahim Adam 1306497075 3. Jati Perdana 1306497144 4. Maydhani Arnia E.P. 1306497226 5. Meiryanti Andryani 1306497251 Problem 5-4 (in USD) Days Account Outstanding Amount Probability of Collection Allowance Amount Write-Off Amount Less than 16 450‚000.00 0.99 4‚500.00 - 16 to 30 150‚000.00
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SC (Service charge) CM (Credit Memo) ———————————————————————————————————————— Check No. 18 was correctly written for $708.62 for a payment on account. The NSF check was from S. King‚ a customer‚ in settlement of an accounts receivable. An entry had not been made for the NSF check. The credit memo is for the collection of a note receivable including interest of $60 which has not been accrued. The bank service charge is $25.00. Instructions (a) Prepare a bank reconciliation at October
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The statement of cash flow is used to illustrate the current cash position‚ liquid assets‚ and accounts receivable. This report is a good indicator of the operational management of the company and the impact of their accounts receivable collection activities. A company can appear financially sound based on the income statement and balance sheets when it is not. A cash flow statement adds context to the reports and reflects the actual cash position. The financial statement of a company provides
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