BE8-1 Presented below are three receivables transactions. Indicate whether these receivables are reported as accounts receivable‚ notes receivable‚ or other receivables on a balance sheet. | (a) | Sold merchandise on account for $64‚000 to a customer. | | (b) | Received a promissory note of $57‚000 for services performed. | | (c) | Advanced $10‚000 to an employee.a. accounts receivableb. notes receivablec. other receivables | | BE9-1 The following expenditures were incurred
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disposition of accounts receivables? What is their function? Since the majority of US thrive on the use of credit cards‚ the accounts receivables for a company may no longer be on a cash-to-cash basis. A company may need to sell these accounts to other companies who specialize in handling accounts receivables if they need cash more quickly or if it would be too costly to perform the necessary billing to collect on the account. The entries used to record the disposition when the receivables are sold
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Chapter 12: Financial Liabilities and Provisions Case 12-1 Prescriptions Depot Limited 12-2 Camani Corporation Suggested Time Technical Review TR12-1 Provision—Measurement 10 TR12-2 Provision—Warranty 5 TR12-3 Note Payable 5 TR12-4 Discounting—Note Payable 10 TR12-5 Discounting—Provision 10 Assignment A12-1 Common Financial Liabilities 10 A12-2 Common Financial Liabilities—Taxes 20 A12-3 Common Financial Liabilities—Taxes 20 A12-4 Foreign Currency
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|1. |Notes Receivable and Accounts Receivable can also be called trade receivables. |True False | |2. |Receivables not currently collectible are reported in the investments section of the balance sheet. | | | | |True False |
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related to the follow areas: * Segregation of Duties * Lack of Internal Control - Lack of control on main production for the company. - Lack of control in accounting records procedure - Lack of control in handling and recording accounts receivable *
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due in 30 days while his accounts receivables are paid in average every 42 days. It is not necessary to explain what paying around hundred suppliers every 10 days represent to cash flows if the company is receiving payments every 42 days‚ this means that the company pays 4 times at 1 time receiving. This is‚ for sure‚ the main reason why the company is losing liquidity and need to borrow money to banks. See Table 5. Furthermore‚ we can see that the average rotation on accounts payables is
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Financial Analysis Case: Peng Plasma Solutions PROFESSOR LENA C. BOOTH Objectives • The objectives of the Financial Analysis session are to analyze Peng Plasma Solutions financial performance‚ and to see why properly managing funding needs is essential for a company to pursue its corporate strategies. Professor Lena C Booth 2 Peng Plasma Solutions – Company Background • A private metal cutting company in China‚ founded by Jerry Peng‚ together • • • • with
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the liability account Loan Payable. May 5 Provided $1‚000 of services to Jason Ratchford‚ a client‚ on account. $1‚000 The asset‚ Accounts Receivable (representing amounts due from customers for work already rendered)‚ is increased‚ which is matched with an increase in Revenues‚ Income‚ and Equity. May 9 Paid $1‚250 of salaries to an employee. $1‚250 Cash is decreased‚ as is Income/Equity via the recording of Wages Expense. May 14 Acquired a new computer for $4‚200‚ on account. $4‚200 Supplies
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TEST OF CONTROLS – REVENUE TRANSACTIONS |Audit Objective |Audit procedure |Findings | |General | | | |Validity |Observe
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Employees 7. Financing activities involve obtaining __________ to operate a business. a. products b. customers c. business incentives d. funds 8. When a business borrows money‚ it incurs a(n) a. tax. b. liability. c. receivable. d. additional equity. 9. Shares of ownership are evidenced by issuing a. bonds payable. b. commercial paper. c. shares of stock. d. notes payable. 10. The resources a business owns are called a. assets. b. liabilities
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