What are two methods of recording accounts receivabletransactions when a cash discount situation is involved?Which is more theoretically correct? Which is used inpractice more of the time? Why?

Q: Which one of the following statements related to the control of cash disbursement is true? Payment…

A: Internal control procedures are those controls framed and implemented by a business to safeguard its…

Q: Discuss the conversion from cash to accrual basis of an increase in accounts or notes receivable

A: In cash basis accounting the transactions are recorded when the cash related to them is issued or…

Q: How might clustering be used to describe customers who owe money (accounts receivable)

A: Accounts Receivable account shows the list of customers of the business who have amount due to the…

Q: The same bookkeeper should avoid contact with BOTH Accounts Receivable AND cash receipts. Explain…

A: Separation of duties or task is a technique used in internal control, under this internal control…

Q: What account to credit if the customer’s notes receivable become delinquent and was not previously…

A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: What is contra entry in cash book? How is it recorded?

A: Meaning of Contra-EntryIn the dual entry accounting system, a contra entry is an entry which is…

Q: Which is better to have? Accounts receivable or notes receivable? And why?

A: Accounting is the process of recording financial transactions that are material to the business. It…

Q: Define the following concepts? a. Petty cash funds. b. Escrow payment. c. Chart of accounts.

A: a. Petty cash funds:A petty cash fund is a special fund operated by a petty cash custodian to pay…

Q: On a bank reconciliation. Deposit in transit is.....?

A: Bank reconciliation is a method of reconciliation of balance in bank book with the total of balance…

Q: The balance of Cash is likely to differ from the bank statement balance. What two factors are likely…

A: Bank Statement: A report or summary that records financial transactions of deposits and withdrawals…

Q: Describe the features of voucher system in handling cash disbursements. What is voucher register?…

A:

Q: Which of the following is an advantage of using the net price method for recording cash discounts on…

A: At the time of recording credit sales, there can be some provision for discount to be given. So,…

Q: After preparing a bank reconciliation, what adjustments does the company need to make to its…

A:

Q: Which of the following statements are true regarding the control of cash receipts and cash payments?…

A: Fraud:   It is an intentional misappropriation of the assets or the financial records of an…

Q: Explain the treatment of certified check for bank reconciliation purposes

A: Solution A certified check is a check for which issuing bank guarantees the availability of cash in…

Q: The main purpose of factoring accounts receivable is a. To invest accounts receivable in another…

A: Factoring is a financial transaction in which a company sells its receivable to a financial company…

Q: What are the different risks associated in the accounting of cash

A: The element of risk arises in each and every area and how well we can minimise or reduce the risk is…

Q: Using an example, compare and contrast physical delivery and cash settlement?

A: The two most prevalent stock derivatives traded on a stock market are futures and options. These are…

Q: What is the primary difference between accounts receivable and notes receivable?

A: Receivable: Receivable refers to an amount to be received in future. General classifications of…

Q: Which of the following reconciling items may not result from bank side reccords of a bank account?

A: The financial statement which records the amount differences between bank statement and bank account…

Q: How does a schedule of interbank transfers show improper cash transfer transactions?

A:

Q: Are any time lags in recording economic events typically experienced in cash disbursements systems?…

A: Payroll System:   A payroll system is a system within an organization that is responsible for…

Q: Why might a business prefer a note receivable to an account receivable?

A: An account receivable is a simple promise to repay the seller done by customer which is due as a…

Q: What is the adjusted balance of the petty cash fund? What is the correct amount of cash and cash…

A: Petty cash fund is maintained for small petty expenses in the business. Cash and cash equivalent are…

Q: Define restricted cash and indicate how it should bereported on the balance sheet

A: Balance sheet: Balance Sheet is one of the financial statements that summarize the assets, the…

Q: What is the difference between cash receipts and cash payments?

A: Cash receipts refers to the collection of money recognized from the customers or from any other…

Q: Explain how receivables can be converted to cash before maturity.

A: Accounts receivable: Accounts receivable refers to the amounts to be received within a short period…

Q: Which of the following relationships best describes the percentage of receivables basis of valuing…

A: Solution 1: relationships best describes the percentage of receivables basis of valuing accounts…

Q: What is the difference between accounts receivable and notes receivable?

A: Note receivable is the instrument that represents the amounts of money borrowed or receivables…

Q: Why should the person in charge of cash receipts not also be in charge of keeping accounts…

A: Here is the answer :

Q: which of the following account will be least likely involved in the purhasing sub-process of the…

A: The journal entries are prepared to keep the record of day to day transactions of the business.  The…

Q: how are accounts receivable measured and what are the control measures on accounts receivable?

A: Account receivable measured by using account receivable to sales ratio. Account receivable turnover…

Q: Both Accounts Receivable and Notes Receivable represent claims that are expected to be collected in…

A: Answer is true

Q: Describe about the Cash rebates obligation.

A: Cash: Cash is the money which is readily available in the form of currency. Since cash can be easily…

Q: What kinds  of fees and penalties can be levied on savings accounts?

A: Bank: It is a financial institution that accept deposits from and provide loan to public. This…

Q: All of the following are problems associated with the valuation of accounts receivable except A)…

A: Accounts receivable:Accounts receivable is the amount of cash owed to the company by the customer…

Q: Why should cash revenues and credit client sales be quickly recorded and reported?

A: Introduction: Accounting is primarily concerned with identifying, recording, measuring, and…

Q: Cash realizable value is calculated as Accounts Receivable plus Allowance for Doubtful Accounts O…

A: Cash realizable value is the amount of cash that is receivable from the accounts receivable.

Q: What is the use of a petty cash fund?

A: A petty cash fund is a fund created to pay small expenses. No journal entry is passed for each…

Q: The difference between the accounts receivable and the cash collection may be due to the following…

A: Trade discounts: Trade discounts is the discount which is given at the time of sale by which a…