Accounts receivable : Accounts receivable refers to the amounts to be received within a short period from customers upon the sale of goods and services on account. In other words, accounts receivable are amounts customers owe to the business. Accounts receivable is an asset of a business. Bad debt expense: Bad debt expense is an expense account. The amounts of loss incurred from extending credit to the customers are recorded as bad debt expense. In other words, the estimated uncollectible accounts receivable are known as bad debt expense. To interpret: The impairment of (€167) in 2015 in terms of how that amount would typically be described in U.S. GAAP.
Accounts receivable : Accounts receivable refers to the amounts to be received within a short period from customers upon the sale of goods and services on account. In other words, accounts receivable are amounts customers owe to the business. Accounts receivable is an asset of a business. Bad debt expense: Bad debt expense is an expense account. The amounts of loss incurred from extending credit to the customers are recorded as bad debt expense. In other words, the estimated uncollectible accounts receivable are known as bad debt expense. To interpret: The impairment of (€167) in 2015 in terms of how that amount would typically be described in U.S. GAAP.
Solution Summary: The author explains that SA Company has been recently engaged in factoring or securitizing the accounts receivable.
Definition Definition Money that the business will be receiving from its clients who have utilized the credit provided to buy its goods and services. The credit period typically lasts for a short term, lasting from a few days, a few months, to a year.
Chapter 7, Problem 7.10BYP
(1)
To determine
Accounts receivable:
Accounts receivable refers to the amounts to be received within a short period from customers upon the sale of goods and services on account. In other words, accounts receivable are amounts customers owe to the business. Accounts receivable is an asset of a business.
Bad debt expense:
Bad debt expense is an expense account. The amounts of loss incurred from extending credit to the customers are recorded as bad debt expense. In other words, the estimated uncollectible accounts receivable are known as bad debt expense.
To interpret: The impairment of (€167) in 2015 in terms of how that amount would typically be described in U.S. GAAP.
(2)
To determine
At what extent does Company SA factor or securitize the accounts receivable and also describe how to find out.
(3)(a)
To determine
To indicate: The effects of accounts receivable in the period of the change.
(b)
To determine
To indicate: The effects of cash flow from operation in the period of the change.
(c)
To determine
To indicate: The effects of accounts receivable in subsequent periods.
(d)
To determine
To indicate: The effects of cash flow from operation in subsequent periods.
(4)
To determine
To Explain: Whether a company can change the extent to which it factors or securitizes receivables to create one-time changes in its cash flow.
Q 9. What is the benefit of a regulatory guarantee or deposit insurance program for depositors of commercial banks?
a. It provides preference to those who are first in line to withdraw funds over those last in line.
b. It provides incentives to depositors to engage in runs.
c. It increases concerns about solvency of a bank.
d. It increases concerns about the asset quality of a bank.
e. It decreases the likelihood of bank runs.
25 What lesson did we derive from Suratul Baqara Q2:280 in relation to Islamic banks’ debtor-customer relations?*
A. If the debtor is in difficulty, grant him time till it is easy for him to repay
B. Be lenient to customers at the time of financing the project
C. Default charges apply to any delay of payment
D. Cancel the transactions
12.4 Which of the following is not a characteristic of a short-term note payable?A. Payment is due in less than a year.B. It bears interest.C. It can result from an accounts payable conversion.D. It is reported on the balance sheet under noncurrent liabilities.