What is aging of receivables?

Q: Explain receivables conversion period

A: It is the time interval connecting the sale of the last item using a credit card and cash receipts…

Q: What is the purpose of an allowance for uncollectibles and why is it important?

A: Accounts receivable is the current asset and the amount that is not received yet from the customer…

Q: How do the percent-of-receivables and aging-of-receivables methods compute bad debts expense?

A: In percent of receivables, bad debt expenses are computed as a percentage of total receivables…

Q: What does the age of accounts receivable refer to? How can we use an aging method to estimate…

A: Accounts receivable aging:   Accounts receivable aging refers to a periodic report that enable the…

Q: How to calculate accounts receivable turnover

A: Accounts receivable turnover refers to how a business uses its assets.The receivables turnover ratio…

Q: n aging analysis of accounts receivable is a study of the maturity of accounts receivable, such that…

A: Aging analysis is very important in financial health of company and credit policy of the company.

Q: Describe how to report and analyze receivables.

A: Receivables are the assets for the company and may include trade receivables, other debtors or bills…

Q: Why does balance of payments contain an account called statistical discrepancy?

A: The equilibrium of installments (BOP), otherwise referred to as equilibrium of worldwide…

Q: Which of the two methods of estimating uncollectible provides for the most accurate estimate of the…

A: The uncollectible debts allowance represents the estimation of the management regarding a portion of…

Q: how much is the Allowance for Overvaluation after adjustment?

A: Given that, Allowance for overvaluation = P157,500 Shippment from home office = 120% of cost…

Q: What's the difference between accounts payable and receivable?

A: Accounts Payable is the current liability for the business and Accounts Receivable is a current…

Q: Give a definition of “Receivables”. Give two examples.

A: In accounting, Receivables means amount to be received from outside of the company. It includes…

Q: What are the account receivables?

A: Current assets: The assets which could be converted into cash within one year like accounts…

Q: Describe factoring of receivables.

A: Definition:   Factoring: A factoring is a financial transaction in which a company sells its…

Q: Explain how to calculate accounts receivable turnover ratio.

A: Accounts receivable turnover: Accounts receivable turnover is a liquidity measure of accounts…

Q: What is accounts receivable management?

A: Accounts receivable management is method for ensuring that whether the customers are paying their…

Q: What is the difference between an account receivable and a note receivable?

A: Receivable: It can be defined as the amount that is owed by the customers from the business.

Q: How should we account for the fact that not every account receivable is likely to be collected?

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

Q: When does Accounts receivable are created?

A: Current assets: The assets which could be converted into cash within one year like accounts…

Q: receivables turnover ratio

A: Receivable turnover ratio is an important accounting metric used to evaluate the performance of…

Q: What are receivables credits? Please explain.

A: Receivable refers to the assets of the company created due to sale of goods and service on credit to…

Q: Short answer Which is more relevant to an investor; Accounts Receivable or Accounts Receivable, Net?…

A: Investors are an important class of stakeholders for every company. The contribute to the…

Q: What is the formula to compute interest on a note receivable?

A: Note receivable: Note receivable refers to a written promise for the amounts to be received within a…

Q: What are age of receivables and how do you calculate them? Please explain

A: Accounts receivable form a part of assets of the entity and represents the amount due from the…

Q: its sales, what will be the level of accounts receivable following the change?

A: We know that DSO = accounts receivable/sales * 365 Hence 50 = 1,000,000/sales*365 or sales =…

Q: Define Current Receivables.

A: Current receivables are recorded under current assets of the company.

Q: Is note receivable a part of quick asset?

A: Note receivable: It refers to a written promise for the amounts to be received within a stipulated…

Q: Differences between Accrued Interest and Payments?

A: Answer: An accrued interest is nothing but interest on a loan or an interest on bond that has been…

Q: What is the difference between the percent-of-receivables and aging-of-receivables methods?

A: Percentage of sales method:Credit sales are recorded by debiting (increasing) accounts receivable…

Q: Receivable Turnover catio

A: Account receivable turnover ration = Net credit Sales / Average Account Receivables Note: 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: What are the basic problems that occur in the valuationof accounts receivable?

A:

Q: What is the gain on extinguishment of the note payable?

A: option b is the answer.

Q: What are the criteria for determining whether a sale of receivables has occurred?

A: Receivables: Receivables refer to an amount to be received in future. General classifications of…

Q: When does an inventory error cancel out, and why?

A:

Q: What is the average amount of receivables?

A: P81,875 is the average amount of receivables.

Audit Procedures

Audit Procedures are methods and techniques performed by the auditor to determine the quality of financial information of clients, thereby expressing an opinion on true & fair view of financial statements and entity position. They are identified and applied at the planning stage of audit after determining audit objectives, scope, approach, and risk assessment.