Accounts Receivable Questions

A powerful tool to import and validate transaction data from other financial systems and create invoices , debit memos , credit memos and on-account credits

Setup steps:

1. Define the line ordering rules

2. Define the grouping rules - attache the line ordering rules to the grouping rules

Capital expenditures are capitalized because of the timing of their estimated benefits – the lemonade stand will benefit the firm for many years. The employees’ work, on the other hand, benefits the period in which the wages are generated only and should be expensed then. This is what differentiates an asset from an expense.

Drop Ship refers to, a manufacturer shipping goods directly to one of its customers' customer (instead of delivering the goods to the customer that placed the order with the manufacturer).

This concept of shipping goods is called as drop ship, drop shipping or a drop shipment.

A deposit in transit is cash (currency, coins, checks, electronic transfers) that a company has received and is rightfully reported as Cash on its balance sheet, but does not appear on the bank statement until a later date.

Money market instruments are debt securities that generally give the owner the unconditional right to receive a stated, fixed sum of money on a specified date.

There are several money market instruments in most Western countries, including treasury bills, commercial paper, bankers' acceptances, deposits, certificates of deposit, bills of exchange, repurchase agreements, federal funds, and short-lived mortgage- and asset-backed securities.

The three steps in the accounting process are

1. Identification,

2. Recording, and

3. Communication. 

Hence, analyzing and interpreting financial reports is not involved in the accounting process.

A journal entry is recorded accourding to the rules of debit and credit.for example goods sold for Rs 50000 for cash ----to record this -- identify the accounts involved-- i.e.goods A/cand Cash A/cgoods is a real account and cash is also a real accountdebit and credit rule for Real accounts is DEBIT WHAT COMES IN CREDIT WHAT GOES OUT according to this--cash is coming to the organisation and goods is leaving from the organisation--Entry for this is Cash A/c Dr. 50000 to Goods A/c or Sales A/c 50000 ( For Cash Sales )

The journal entry to record a credit sale is Accounts Receivable. Credit sale is nothing butthe customers pay at the time of buying.