Accounts Receivable Questions

Q:

How much time needs to pass for an A/R account to be considered delinquent?

Answer

After 90 days of the due date

Report Error

View answer Workspace Report Error Discuss

18 25837
Q:

Explain what is BRS?

Answer

BRS - Bank Reconciliation Statement


 


A bank reconciliation statement is a statement prepared by organizations to reconcile the balance of cash at bank in a company's own records with the bank statement on a particular date.


 


The differences may arise because of the following reasons:


 


     - Cheques deposited into bank but not yet collected by bank


 


     - Cheques issued by the organization but not yet presented for payment


 


     - Cheques directly deposited by customers into the bank


 


     - Bank charges debited by bank


 


     - Interest credited or some receipts directly collected by bank based on org. request.


 


     - Some payments directly made by bank based on the organizations request.


 


So, the statement shows the reasons as what are the reasons for difference in balance.

Report Error

View answer Workspace Report Error Discuss

23 20344
Q:

What is the difference between back end collections and front end collections?

Answer

Back end collections means like commission on sales or commission on providing services.
Front end collections means like sales and providing services

Report Error

View answer Workspace Report Error Discuss

17 17367
Q:

What is the journal entry process from the time of generating an invoice to receiving payment?

Answer

When an invoice is generated and sent to the client/customer, the JE to be passed is debit customer account and credit revenue/accounts receivable account. When payment is received from customer, then debit bank account and credit the customer account concerned

Report Error

View answer Workspace Report Error Discuss

9 10781
Q:

Contra-entries are passed only when

A) Simple cash book is prepared B) Double column cash book is prepared
C) Three column cash book is prepared D) None of the above
 
Answer & Explanation Answer: B) Double column cash book is prepared

Explanation:

Contra-entry is the entry which effected the both sides in cash book.

It is occured in three times, i.e.,

1.Cash deposited in to bank,

2.Cash withdrawn from the bank for office use, and

3.Receivable cheque deposited in to the bank in another day.

Report Error

View Answer Report Error Discuss

11 8253
Q:

How to define Inter company Transaction in Account Receivable?

Answer

Before answering the above question let us first understand the meaning of Intercompany transactions. Intercompany transactions are those transactions that takes place between two or more entities of the same group of company. So the receivable of one entity would the payable of another entity. All intercompany transactions are eliminated befor preparing the final Balance sheet of the group company.

Report Error

View answer Workspace Report Error Discuss

7 5817
Q:

What are the components or materials used by Accounts receivable departments?

Answer

Accounts Receivable department is very important department of the company. The responsbilities of the department is approval of credit limit to the customer study the past history of customer credit sending invoices to the customer updation of the customer credit data factoring contacts with the factoring agents follow up of customers motivating the customers to pay the dues intime and communicating the information to the management. Credit sales data estimation of credit sales for the future period request for funds to finance department whenever they required follow up of customers receivables management.

Report Error

View answer Workspace Report Error Discuss

4 5211
Q:

What is Evaluated Receipt Settlement?

Answer

ERS is a business process between trading partners that conduct commerce without invoices. In an ERS transaction the supplier ships goods based upon an Advance Shipping Notice (ASN) and the purchaser upon receipt confirms the existence of a corresponding purchase order or contract verifies the identity and quantity of the goods and then pays the supplier.

Report Error

View answer Workspace Report Error Discuss

6 5085