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Receivable
Accounts receivable, abbreviated as AR or A/R, are legally enforceable claims for payment held by a business for goods supplied or services rendered that customers have ordered but not paid for. The accounts receivable process involves customer onboarding, invoicing, collections, deductions, exception management, and finally, cash posting after the payment is collected. Accounts receivable are generally in the form of invoices raised by a business and delivered to the customer for payment within an agreed time frame. Accounts receivable is shown in a balance sheet as an asset. It is one of a series of accounting transactions dealing with the billing of a customer for goods and services that the customer has ordered. These may be distinguished from notes receivable, which are debts created through formal legal instruments called promissory notes. Accounts receivable can impact the liquidity of a company. Overview Accounts receivable represents money owed by entities to the f ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Notes Receivable
Notes receivable represents claims for which formal instruments of credit are issued as evidence of debt, such as a promissory note. The credit instrument normally requires the debtor to pay interest and extends for time periods of 30 days or longer. Notes receivable are considered current assets if they are to be paid within one year, and non-current if they are expected to be paid after one year. Measurement In concept, notes receivables are initially measured at present value. When referring to the present value, it means the sum of all future cash flows discounted using the prevailing market rate of interest for similar notes. In terms of short-term notes receivable, it is measured at face value. The initial measurement of long-term notes receivable depends on whether the notes are interest-bearing or noninterest-bearing. Interest-bearing notes have a specified interest rate payable on top of their face value. Notes with rates below market rates, or those with no stated in ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Debit
Debits and credits in double-entry bookkeeping are entries made in account ledgers to record changes in value resulting from business transactions. A debit entry in an account represents a transfer of value ''to'' that account, and a credit entry represents a transfer ''from'' the account. Each transaction transfers value from credited accounts to debited accounts. For example, a tenant who writes a rent cheque to a landlord would enter a credit for the bank account on which the cheque is drawn, and a debit in a rent expense account. Similarly, the landlord would enter a credit in the rent income account associated with the tenant and a debit for the bank account where the cheque is deposited. Debits typically increase the value of assets and expense accounts and reduce the value of liabilities, equity, and revenue accounts. Conversely, credits typically increase the value of liability, equity, and revenue account and reduce the value of asset and expense accounts. Debit ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Credit (accounting)
Debits and credits in double-entry bookkeeping are entries made in account ledgers to record changes in value resulting from business transactions. A debit entry in an account represents a transfer of value ''to'' that account, and a credit entry represents a transfer ''from'' the account. Each transaction transfers value from credited accounts to debited accounts. For example, a tenant who writes a rent cheque to a landlord would enter a credit for the bank account on which the cheque is drawn, and a debit in a rent expense account. Similarly, the landlord would enter a credit in the rent income account associated with the tenant and a debit for the bank account where the cheque is deposited. Debits typically increase the value of assets and expense accounts and reduce the value of liabilities, equity, and revenue accounts. Conversely, credits typically increase the value of liability, equity, and revenue account and reduce the value of asset and expense accounts. Debits a ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Contra Account
Debits and credits in double-entry bookkeeping are entries made in Account (accountancy), account ledgers to record changes in Value (economics), value resulting from business transactions. A debit entry in an account represents a transfer of value ''to'' that account, and a credit entry represents a transfer ''from'' the account. Each transaction transfers value from credited accounts to debited accounts. For example, a tenant who writes a rent cheque to a landlord would enter a credit for the bank account on which the cheque is drawn, and a debit in a rent expense account. Similarly, the landlord would enter a credit in the rent income account associated with the tenant and a debit for the bank account where the cheque is deposited. Debits typically increase the value of assets and expense accounts and reduce the value of liabilities, equity, and revenue accounts. Conversely, credits typically increase the value of liability, equity, and revenue account and reduce the value ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Balance Sheet
In financial accounting, a balance sheet (also known as statement of financial position or statement of financial condition) is a summary of the financial balances of an individual or organization, whether it be a sole proprietorship, a business partnership, a corporation, private limited company or other organization such as government or not-for-profit entity. Assets, liabilities and ownership equity are listed as of a specific date, such as the end of its financial year. A balance sheet is often described as a "snapshot of a company's financial condition". It is the summary of each and every financial statement of an organization. Of the four basic financial statements, the balance sheet is the only statement which applies to a single point in time of a business's calendar year. A standard company balance sheet has two sides: assets on the left, and financing on the right–which itself has two parts; liabilities and ownership equity. The main categories of assets are ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Collection Agency
Debt collection or cash collection is the process of pursuing payments of money or other agreed-upon value owed to a creditor. The debtors may be individuals or businesses. An organization that specializes in debt collection is known as a collection agency or debt collector. Most collection agencies operate as agents of creditors and collect debts for a fee or percentage of the total amount owed. Historically, debtors could face debt slavery, debtor's prison, or coercive collection methods. In the 21st century in many countries, legislation regulates debt collectors, and limits harassment and practices deemed unfair. Background Invoices are issued with terms of payment. These terms vary widely from 'cash terms', , to many forms of ' credit terms' (for example ''30 days from date of invoice''). Unpaid invoices are considered outstanding, and those which remain unpaid for periods longer than their 'terms' indicate are considered overdue. It is the aim of the cash collection func ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Asset
In financial accounting, an asset is any resource owned or controlled by a business or an economic entity. It is anything (tangible or intangible) that can be used to produce positive economic value. Assets represent value of ownership that can be converted into cash (although cash itself is also considered an asset). The balance sheet of a firm records the monetaryThere are different methods of assessing the monetary value of the assets recorded on the Balance Sheet. In some cases, the ''Historical Cost'' is used; such that the value of the asset when it was bought in the past is used as the monetary value. In other instances, the present fair market value of the asset is used to determine the value shown on the balance sheet. value of the assets owned by that firm. It covers money and other valuables belonging to an individual or to a business. ''Total assets'' can also be called the ''balance sheet total''. Assets can be grouped into two major classes: Tangible property, tangib ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Trial Balance
A trial balance is an internal financial statement that lists the adjusted closing balances of all the general ledger accounts (both revenue and capital) contained in the ledger of a business as at a specific date. This list will contain the name of each nominal ledger account in the order of liquidity and the value of that nominal ledger balance. Each nominal ledger account will hold either a debit balance or a credit balance. The debit balance values will be listed in the debit column of the trial balance and the credit value balance will be listed in the credit column. The trading profit and loss statement and balance sheet and other financial reports can then be produced using the ledger accounts listed on the same balance. History The first published description of the process is found in Luca Pacioli's 1494 work '' Summa de arithmetica'', in the section titled ''Particularis de Computis et Scripturis''. Although he did not use the term, he essentially prescribed a techniqu ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Accounting Software
Accounting software is a computer program that maintains accounting, account books on computers, including recording Financial transaction, transactions and Balance (accounting), account balances. It may depend on virtual thinking. Depending on the purpose, the software can manage budgets, perform accounting tasks for multiple currencies, perform payroll and customer relationship management, and prepare financial reporting. Work to have accounting functions be implemented on computers goes back to the earliest days of electronic data processing. Over time, accounting software has revolutionized from supporting basic accounting operations to performing real-time accounting and supporting financial processing and reporting. Cloud accounting software was first introduced in 2011, and it allowed the performance of all accounting functions through the internet. Modules Accounting software is typically composed of various modules, with different sections dealing with particular areas ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Computer
A computer is a machine that can be Computer programming, programmed to automatically Execution (computing), carry out sequences of arithmetic or logical operations (''computation''). Modern digital electronic computers can perform generic sets of operations known as Computer program, ''programs'', which enable computers to perform a wide range of tasks. The term computer system may refer to a nominally complete computer that includes the Computer hardware, hardware, operating system, software, and peripheral equipment needed and used for full operation; or to a group of computers that are linked and function together, such as a computer network or computer cluster. A broad range of Programmable logic controller, industrial and Consumer electronics, consumer products use computers as control systems, including simple special-purpose devices like microwave ovens and remote controls, and factory devices like industrial robots. Computers are at the core of general-purpose devices ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Financial Year
A fiscal year (also known as a financial year, or sometimes budget year) is used in government accounting, which varies between countries, and for budget purposes. It is also used for financial reporting by businesses and other organizations. Laws in many jurisdictions require company financial reports to be prepared and published on an annual basis but generally with the reporting period not aligning with the calendar year (1 January to 31 December). Taxation laws generally require accounting records to be maintained and taxes calculated on an annual basis, which usually corresponds to the fiscal year used for government purposes. The calculation of tax on an annual basis is especially relevant for direct taxes, such as income tax. Many annual government fees—such as council tax and license fees are also levied on a fiscal year basis, but others are charged on an anniversary basis. Some companies, such as Cisco Systems, end their fiscal year on the same day of the week each ye ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Calendar Year
A calendar year begins on the New Year's Day of the given calendar system and ends on the day before the following New Year's Day, and thus consists of a whole number of days. The Gregorian calendar year, which is in use as civil calendar in most of the world, begins on January 1 and ends on December 31. It has a length of 365 days in an ordinary year but, in order to reconcile the calendar year with the astronomical cycle, it has 366 days in a leap year. With 97 leap years every 400 years, the Gregorian calendar year has an average length of 365.2425 days. Other formula-based calendars can have lengths which are further out of step with the solar cycle: for example, the Julian calendar has an average length of 365.25 days, and the Hebrew calendar has an average length of 365.2468 days. The Lunar Hijri calendar ("Islamic calendar") is a lunar calendar consisting of 12 lunar months in a year of 354 or 355 days. The astronomer's mean tropical year, which is averaged over e ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
