Accounts - QS Study

What is the Allowance for Doubtful Accounts?

What is the Allowance for Doubtful Accounts?

Subject: Accounting

The allowance for doubtful accounts is a reduction of the total amount of accounts receivable appearing on a company’s balance sheet. The allowance for doubtful accounts represents management’s best estimate of the amount of accounts…

What is an Accrued Receivable?

What is an Accrued Receivable?

Subject: Accounting

An accrued receivable is either a trade receivable or a non trade receivable for which a business has earned revenue, but for which it has not yet issued an invoice to the customer. You…

What is Gross Accounts Receivable?

What is Gross Accounts Receivable?

Subject: Accounting

Gross accounts receivable is the amount of sales that a business has made on credit, and for which no payment has yet been received. The gross receivable figure is useful for estimating the amount of…

How do you Collect Past Due Invoice?

How do you Collect Past Due Invoice?

Subject: Accounting

A past due invoice is a billing that has not been paid as of its due date. If a business extends credit to its customers, it is likely to experience situations where it must collect…

What is Equity Accounts?

What is Equity Accounts?

Subject: Accounting

Equity accounts are the financial representation of the ownership of a business. Equity can come from payments to a business by its owners, or from the residual earnings generated by a business. Because of the…

What is Manufacturing Cost Accounting?

What is Manufacturing Cost Accounting?

Subject: Accounting

Manufacturing cost accounting encompasses several tasks that impact production operations and the valuation of inventory. These activities can significantly boost the profits of a business, as well as bring it into compliance with the applicable…

What is Accounting for Accounts Payable?

What is Accounting for Accounts Payable?

Subject: Accounting

The accounting for accounts payable involves the recordation and payment of liabilities. This is the primary functional area through which a business records expenses and pays other parties. The key accounts payable accounting tasks are…

What is Accounts Payable Ratios?

What is Accounts Payable Ratios?

Subject: Accounting

Accounts payable ratios are designed to measure the operational efficiency of a payables department, as well as its ability to pay suppliers in a timely manner. The operational efficiency ratios are monitored internally as a…

What is Chart of Accounts Numbering?

What is Chart of Accounts Numbering?

Subject: Accounting

The first type of numbering to determine for a chart of accounts involves their structure. This is the layout of an account number, and involves the following components: Division code – This is typically a…

What is the Difference between Accounts Receivable and Accounts Payable?

What is the Difference between Accounts Receivable and Accounts Payable?

Subject: Accounting

Accounts receivable are the amounts owed to a company by its customers, while accounts payable are the amounts that a company owes to its suppliers. The amounts of accounts receivable and payable are routinely compared…