Accounts Receivable In Medical Office

Accounts Receivable In Medical Office
Accounts receivable is money owed to a company by its debtors. The medical office has the
responsibility to maximize its revenue potential by ensuring cash flow sufficiently for effective
management. The overall goal is to achieve the shortest collection period possible. Account
Receivable (AR) management involve almost all areas of the medical office. The legal concept
include following and understanding Federal and State regulations, because this area in regards to
Medicare, Medicaid, and other federally funded programs has been of the most concern for abuse
and fraud. Contract negotiation is another important aspect that requires comprehensive knowledge
that include reimbursement rates, effective and termination dates payment terms and
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ACCT 555 Week 6 HW KB Essay
Khalia Brewer
ACCT 555
Week 6
Homework
14–21
A. (2)– Occurrence
B. (1)– Accuracy
C. (3)– Monthly statements are sent to customers and any discrepancies are resolved by someone
independent of cash handling and accounting.
D. (4)– existing cash receipts are recorded.
14–22
A.(4)– Receiving reports are prepared for all materials received and such reports are accounted for
on a timely basis.
B.(3)– Employees involved in the credit–granting function are separated from the sales function
C.(1)– Prelistings and predetermined totals are used to control postings.
D.(2)– As goods leave the shipping dock, the system generates a bill of lading and associated sales
invoice, which is automatically recorded in the sales journal.
14–23
A. ... Show more content on Helpwriting.net ...
7. a. Recorded sales are for the correct amounts (Accuracy).
b. Review a sample of sales transactions to determine if there is documentation of the independent
verification.
c. Sales could be misstated because they are recorded at inaccurate amounts.
d. For a sample of sales transactions, verify the accuracy of the sales amount.
8. a. All cash sales are recorded (Completeness).
b. Inquire about duties for individuals responsible for cash collections and observe whether they
have access to accounting or shipping functions.
c. The person handling cash collections may misappropriate cash and not record the cash sale in
accounting records.
d. Trace a sample of shipments to determine if they have been recorded as sales in the accounting

records.
9. a. Sales transactions are correctly included in the accounts receivable master file and are correctly
summarized (Posting and Summarization).
b. Examine evidence that the accounts receivable master file to the general ledger for accounts
receivable.
c. The accounts receivable master file does not reflect transactions that are included in the ending
accounts receivable general ledger balance.
d. Compare the dates of entry in the sales journal for a sample of sales transactions to the date the
transactions are posted in the accounts receivable master file.
15–22
A. (3)– decrease.
B .(1)– increase
C. (1)– Population size
D.

Chapter 7 Acc557
CHAPTER 7
Cash and Receivables
ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC)
Topics 1. 2. Accounting for cash. Accounting for accounts receivable, bad debts, other allowances.
Accounting for notes receivable. Assignment and factoring of accounts receivable. Analysis of
receivables. Petty cash and bank reconciliations. Questions 1, 2, 3, 4, 21 5, 6, 7, 8, 9, 10, 11, 12, 13,
14, 15 14, 15 16, 17, 18, 19 20 22 Brief Exercises 1 2, 3, 4, 5 Concepts Exercises 1, 2 3, 4, 5, 6, 7, 8,
9, 10, 11, 12 18, 19 12, 13, 14, 15, 16, 17, 21 20, 21 22, 23, 24, 25 Problems 1 2, 3, 4, 5, 6 8, 9, 10 7,
11, 12, 13 1 12, 13, 14 1, 2, 3, 4, 5, 10, 11 6, 7, 8, 9 6, 8 for Analysis
3. 4.
6, 7 8, 9, 10, 11, 12 13 14, 15, 16
5. *6.
*This material is ... Show more content on Helpwriting.net ...
Bad debt reporting issues. Basic note and accounts receivable transactions. Bad debt reporting
issues. Sale of notes receivable. Zero–interest–bearing note receivable. Reporting of notes
receivable, interest, and sale of receivables. Accounting for zero–interest–bearing note. Receivables
management. Bad debt reporting, ethics. Simple Simple Moderate Moderate Moderate Moderate
Moderate Moderate Moderate Moderate Moderate 10–15 15–20 25–30 25–30 25–30 20–25 20–30
25–30 25–30 25–30 25–30
7–4
ANSWERS TO QUESTIONS
1. Cash normally consists of coins and currency on hand, bank deposits, and various kinds of orders
for cash such as bank checks, money orders, travelers' checks, demand bills of exchange, bank
drafts, and cashiers' checks. Balances on deposit in banks which are subject to immediate
withdrawal are properly included in cash. Money market funds that provide checking account
privileges may be classified as cash. There is some question as to whether deposits not subject to
immediate withdrawal are properly included in cash or whether they should be set out separately.
Savings accounts, time certificates of deposit, and time deposits fall in this latter category. Unless
restrictions on these kinds of deposits are such that they cannot be converted (withdrawn) within one

year or the operating cycle of the entity, whichever is longer, they are properly classified as current
assets. At the same time, they may well be presented separately

Financial Statements Measure The Liquidity And The...
Introduction The financial statements measure the liquidity and the strength of a business. On the
balance sheet; offsets calculate the real value of accounts receivables and fixed assets. Uncollectible
accounts receivables and depreciation reflect the offsets reported on financial statements. In
accordance with generally accepted accounting principles (GAAP); two methods compute the
uncollectible accounts receivable expense. Just like uncollectible accounts offset the value of
accounts receivables; so do depreciation expenses counteract the value of fixed assets. Also called
contra accounts, the journal entries accumulate and are then recorded on the balance sheet.
Part One – Uncollected Receivables The first technique is the write–off method. Small companies
with a small number of uncollected accounts receivables, or, bad debts; utilize this process. Once a
customer account becomes worthless, a write–off occurs. Immediately, the write–off is recorded in
the journal; applied directly to the uncollectible customer account. The first step in this journal
entry; debit the customer's accounts receivable account. In the next entry; credit the allowance for
doubtful accounts. With this process, an accumulation of entries are completed during the period, as
customer accounts become uncollectible. The book "Financial Accounting" (Duchac, Reeve,
Warren, 2014) states: "At the end of a period, Allowance for Doubtful Accounts will normally have
a balance." Second, the

Accounts Receivable and Information
chapter 1
accounting information systems: An overview
Suggested Answers to Discussion Questions
1.1 The value of information is the difference between the benefits realized from using that
information and the costs of producing it. Would you, or any organization, ever produce information
if its expected costs exceeded its benefits? If so, provide some examples. If not, why not? Most
organizations produce information only if its value exceeds its cost. However, there are two
situations where information may be produced even if its cost exceeds its value. a. It is often
difficult to estimate accurately the value of information and the cost of producing it. Therefore,
organizations may produce information that they expect ... Show more content on Helpwriting.net ...
While this active learning activity takes more time than a lecture does, it drives the point home
much better than a lecture would. It also keeps the students more engaged in the material.
1.4 How do an organization's business processes and lines of business affect the design of its AIS?
Give several examples of how differences among organizations are reflected in their AIS. An
organization's AIS must reflect its business processes and its line of business. For example: *
Manufacturing companies will need a set of procedures and documents for the production cycle;
non–manufacturing companies do not. * Government agencies need procedures to track separately
all inflows and outflows from various funds, to ensure that legal requirements about the use of
specific funds are followed. * Financial institutions do not need extensive inventory control systems.
* Passenger service companies (e.g., airlines, bus, and trains) generally receive payments in advance
of providing services. Therefore, extensive billing and accounts receivable procedures are not
needed; instead, they must develop procedures to account for prepaid revenue. * Construction firms
typically receive payments at regular intervals, based on the percentage of work completed. Thus,
their revenue cycles must be designed to track carefully all work performed and the

Analysis Of Accounts Receivable Balances
Interpretation of the Receivables Data Accounts receivable balances Accounts receivables balances
are the uncollected amounts as at a specific point in time. For instance, for year one, first quarter at
end of March, the balance is $ 386,875 and for the second quarter it is $ 333,000. For the second
year, it is estimated that the balance as at end of March and June shall be $ 449,000 and $ 395,125
respectively. Average collection period (ACP) The average collection period is the average number
of days between the date that a credit sale is made, and the date that the money is received from the
customer. Aging schedules These are tables that are used to shows a summary of the breakup of
accounts receivable into different time brackets. It ... Show more content on Helpwriting.net ...
Uncollected balances schedules The uncollected balances schedule permits managers to remove the
effects of seasonal and/or cyclical sales variation and to construct an accurate measure of
receivables payment patterns. Thus, it provides financial managers with better aggregate information
than do such crude measures as the ACP or aging schedule. Quarterly carrying costs for the end of
March and the end of June These are the costs incurred so that the receivables can be translated into
income. The difference in quarterly carrying costs is projected at $ 862 in both year 1 and 2.
Sensitivity of the Results to the Basic Assumptions For the first year, the accounts receivable
balance is projected to drop by $ 53,875 while the average collection period drops by 16 days
between the two quarters. In the second year, there is no projected change on the drop in accounts
receivable balance but the drop in average collection period is 12 days. The difference in quarterly
carrying costs is projected at $ 862 in both year 1 and 2. Strategies to Reduce Carrying Costs of
Receivables 1. Use of A strategic approach receivables' management that supports the company's
goals. The strategy to be used should be clearly defined and communicated to the customers to
eliminate any misinformation or misunderstanding.

Accounting Analysis On The Accounting Cycle Process Essay
Introduction & Executive Summary [1–3 Paragraphs] Accounting relates to all a business does and
is seen in every aspect of a business whether it is small or big and general. Whether one is a
customer or has a job in a business, when looking into a company and seeing the steps and
procedures a business does whether it be externally interacting, or in the books , I can now see how
every decision either the customer takes or the business does affects different aspects of the
businesses accounts. The accounting topics covered are the Accounting Cycle; the steps that account
for recording all types of transactions in the books. Merchandising Operations; involve the
inventorial decisions businesses make on the daily basis and the tracking of inventory. Internal Cash
and Control; is the safeguarding of cash, efficiency of operations and reliability of the books.
Receivables; the promises of payments on account, the advantages of getting paid or risks of not
getting paid in the future. Plant Assets, Natural Resources and Intagibles;... . Summary Concepts of
the Accounting Cycle Process (1–2 Paragraphs) In the accounting cycle the main basic equation of
accounting is Assets = Liabilities + Equity. These three main accounting categories help split
financial statements into a list of more detailed accounts under each main category. The accounting
cycle involves multiple steps that that account for business transaction in the accounting period.
Briefing the accounting cycle I will

Moses San Miguel
Assertions Existence and occurrence Audit Objectives: Substantiate the existence of receivables and
the occurrence of revenue transactions. Prove none of the account receivables are fictitious.
Completeness Audit objectives: Establish the completeness of receivables and revenue transactions.
Rights and obligations Audit objectives: Determine the client has rights to the recorded receivables.
Prove the accounts receivable are collectible in the normal course of business and are bona fide
claims owe the company. Valuation or allocation Determine that the valuation of receivables and
revenue is at appropriate net realizable values. Presentation and ... Show more content on
Helpwriting.net ...
Any securities held by client as collateral for notes receivable should be inspected and listed at the
same time. Complete control over negotiated instruments should be maintained until the count and
inspection are completed. The confirmation letter sent to a bank, collection agency, secured creditor,
or other holder should contain a request for verification of the name of the maker, the balance of the
note, the interest rate, and the due date. Financial statement assertions: existence and occurrence,
and rights and obligation. Internal control weaknesses addressed: Q1, Q2, Q3 and Q14 Confirm
receivables with debtors. By confirming account receivable, the existence of the receivable and
customers should be proved. Most positive confirmation forms will be sent to ask the debtor to
confirm directly about the accuracy of the dollar amount shown on the confirmation request.
Positive confirmation will be sent if the balance is greater than $7,500. The negative confirmation
will be sent to address to the debtor company asking it to advise only if the balance shown is
incorrect. Financial statement assertions: existence and occurrence, rights and obligation, valuation
and allocation. Internal control weaknesses addressed: Q1, Q2, Q3 and Q14 Review the year–end
cutoff of sales transactions. Financial statement assertions: existence and occurrence, rights and
obligation,

Accounts Receivable and Increase
Question 1
Complete
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Question text
The effect on the accounting equation of the business buying a computer worth $900, paying $450
cash and owing $450 to be paid in 30 days' time is:
Select one:
a. decrease the asset computers, increase the asset cash, decrease the liability accounts payable.
b. increase the asset computers, increase the asset cash, decrease the liability accounts payable.
c. increase the asset computers, decrease the asset cash, increase the liability accounts payable.
d. increase the asset computers, decrease the asset cash, decrease the liability accounts payable.
Question 2
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If only one side of a $100 transaction is ... Show more content on Helpwriting.net ...
decreases assets and increases liabilities.
c. decreases assets and liabilities.
d. decreases assets and equity.
Question 5
Complete
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Which of these would be classed as a transaction on credit?
Select one:
a. Payment of salaries.
b. Sale of goods on account.
Question 6
Complete
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Question text
An example of a personal transaction would be:
Select one:
a. buying an iPad for the owner's children on a company credit card.
b. lunch paid for by the business.
c. an owner buying flowers with their own money.
d. the business hiring a personal assistant.
Question 7
Complete
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For the cash account to decrease and the profit to decrease, the transaction occurring could have
been a/an:
Select one:
a. agreement with a supplier on the value of the next delivery.
b. purchase of a new printer for the owner's home computer.
c. payment of an electricity bill.
d. repayment of a loan.
Question 9
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An owner pays her private motor vehicle insurance from the business bank account. This is:
Select one:
a. none of the above.
b. a business event.
c. a business transaction.
Question 10
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Evidence that would not be of help in recording a transaction would be:
Select one:
a. an

Verifying And Developing Accounts Receivables Accounting...
A Project Report
On
Customizing and Developing Accounts Receivables in Accounting Software developed using
salesforce
Submitted to
Amity University Uttar Pradesh
In partial fulfillment of Industrial Training of the degree of
Bachelor of Technology
In
Computer Science and Engineering
By
Surbhi Singh
Under the guidance of
Mrs. Monika Bhalla
DEPARTMENT OF COMPUTER SCEINCE AND ENGINEERING
AMITY SCHOOL OF ENGINEERING AND TECHNOLOGY
AMITY UNIVERSITY UTTAR PRADESH
Declaration
I, Surbhi Singh of B.Tech (Computer Science and Technology) hereby declare that the project work
entitled "Customizing and Developing Accounts Receivables in Accounting Software developed
using salesforce" submitted to the Amity University Uttar Pradesh, is a record of an original work
done by me under the guidance of Mr. Ashish Tomar, Director, Versatile Knowledge Consultants
Private Limited(Jaipur), and this project work has not performed the basis for the award of any
Degree or diploma/ associate ship / fellowship and similar project if any.
NOIDA
DATE: Surbhi singh
Certificate
On the basis of declaration submitted by Surbhi Singh of B.Tech (Computer Science and
Technology), I hereby certify that the project titled Customizing and Developing Accounts

Receivables in Accounting Software developed using salesforce which is submitted to Department
of computer Science and Technology, Amity School of engineering and

Design a Proposal for Appropriate Controls to Cover Cash,...
Controls for Outflows
ACC/544
November 12, 2012
Controls for Outflows
Small, midsized, and large businesses need effective controls to ensure that the business has the
lowest risk rate possible. The lower the risk, the less likely that fraud would occur. In this analysis,
Learning Team B will provide a proposal for appropriate controls to cover cash, sales, accounts
receivable, inventory, and production. The team will discuss some prevention techniques to reduce
these risks and make recommendations in areas that will help controls within the organization.
Cash Controls
Internal controls for cash is essential to ensure that transactions are properly recorded, fraud risk is
managed, and management have given the proper ... Show more content on Helpwriting.net ...
The threats could cost the business customers and money which will reflect on the financial
statements. Management should stress the importance of these controls and make sure they are
being upheld with monitoring and evaluation.
Accounts Receivable Controls
One of the main assets of an organization is the accounts receivable department. It is a vital part of
the organization. The information collected from start to the complete of the accounts receivable
cycle is important in making sure every step was followed according to the proper procedures made
by the organization. Setting up new customers in the database system correctly is important when
the credit and billing process takes place. When customer orders are made on the customer's account
proper authorization is needed to safeguard unauthorized orders and the ability to pay for good
received (Louwers, Ramsay, Sinason, & Strawser, 2007).
The separation of duties is significant to ensuring that not the same person is issuing credit and
billing the customer. Once the goods or services has been received and verified for each customer
the invoice can be printed. Distributing the monthly statements for the customer accounts showing
what activity was taken during the month will help discover discrepancies if there are any made. The
customer will know if any unauthorized activity was made on the account and notify the
organization
Inventory

Factors Affecting The For Verifying Accounts Receivable
6) I will address all major factors affecting sample size for confirming accounts receivable.
A) The following are factors will affect the sample size for confirming accounts receivable.
B) Tolerable accounts receivable and financial statement misstatement.
C) The Inherent risk will depend on the size of the total accounts receivable and the number of
accounts, which includes prior year results, and expected misstatements.
D) Control risk.
E) Achieved detection risk based on other substantive tests, and type of confirmation
F) Generally a positive confirmation requires a smaller number of sample sizes.
7) Another point I will address is the major issue of verifying the ending balance in property, plant
and equipment is the possibility of legal encumbrances. I will discuss any specific concerns I may
have. I I will describe the procedures that I will undertake to obtain evidence about existing legal
encumbrances.
The auditors from Keller will need to perform the following steps in order to gain access to the
evidence about existing legal cases include:
1. Inquiry with property, plant and equipment custodians
2. Review of minutes of meetings
3. Review of all assets noted during inventory observations (property, plant and equipment)
4. Confirmation of the client's liabilities
5. Reading and reviewing lease agreements
6. Reading and reviewing all documents related to assets purchase (property, plant and equipment)
The procedures mentioned are to determine whether there are

Learning Check
Chapter 14
Auditing the Revenue Cycle
|Learning Check |
The revenue cycle includes the activities involved in the exchange of goods and services with
customers and the realization of the revenue in cash.
The classes of transactions in this cycle for a merchandising company are sales, sales adjustments,
and cash receipts. The primary accounts affected by these transactions are sales, accounts
receivable, cost of sales, inventory, cash, sales discounts, sales returns and allowances, bad debts
expense, and allowance for uncollectable accounts
Specific audit objectives for the revenue cycle are derived from the five categories of management 's
financial statement assertions.
b. Specific audit ... Show more content on Helpwriting.net ...
a hotel.
a. Certain balance sheet accounts like accounts receivable and inventories are going to be very
significant for the computer manufacturer, but relatively immaterial for the hotel. The computer
company is also likely to have a higher ratio of sales to fixed assets, or sale to total assets, than the
hotel.
b. The computer company auditor will have significant issues associated with the risk of
misstatement with respect to the existence of receivables and inventories that are not present for the
hotel. The computer company auditor will also have to address valuation and allocation issues
associated with the collectability of receivables and lower of cost or market of inventories that are
insignificant for the hotel. The hotel will have a potential risk of material misstatement in terms of
how it accounts for revenues from properties that it manages for others, as opposed to properties that
it owns.
14–4. Factors that might motivate management to deliberately misstate revenue cycle assertions
include: Pressures to overstate revenues in order to report achieving announced revenue or

profitability targets or industry norms that were not achieved in reality owing to such factors as
global, national, or regional economic conditions, the impact of technological developments on the
entity 's

The Vertical Analysis Of Starbucks Essay
Account receivables Horizontal analysis Starbucks Corps had its gross account receivables for the
year 2015 increase by 14.44% which led to its net receivables increase by $88,000,000 which
translates to an increase of 13.95% of the net account receivables. This was followed by an increase
in doubtful debts through the previous year by 6.12% to %6,700,000 from the ear 2014. This is due
to the increase in the number also sales which led to the increase in account receivables and also
doubtful debts in 2015. The risk that the company undertook also increases in line with the increase
in account receivables. Verticals analysis The vertical analysis of Starbucks is based on the baseline
being the total assets in order to for a basis for the account receivables for the year ended 27
September 2015. There was a slight decline in the percentage from 5.93% in September 2014 to
5.86% in 2015 September. Allowance for doubtful debts however increased by 0.03% in the fiscal
year ending 2015. This was followed by a drop in net accounts receivables in 2015 by 0.09%, due to
the changes in the account receivables accounts. Methods of accounting for accounts receivables
Account receivables accounts for purchases which consumers have not yet aid for. This takes cares
of any losses that the firm might incur due to allowing credit to certain clients. Bad debts are
recorded in the income statement and they represent the des which the company doesn't expect to be
paid back. The account

Aging Schedule of Accounts Receivable
ANSWERS TO QUESTIONS: 1. Table 1: Aging Schedule of Accounts Receivable AGE OF
ACCOUNT | BALANCE OUTSTANDING | % OF TOTAL BALANCE OUTSTANDING | 0–15
days | $ 20,000 | 19.59 % | 16–30 days | 30,000 | 29.39 | 31–60 days | 40,000 | 39.19 | 61–90 days |
10,000 | 9.80 | Beyond 90 days | 2,071 | 2.03 | TOTAL | $ 102,071 | 100.0 % |
2. To evaluate the credit quality of Aero–Strip's accounts receivables portfolio, we turn to their
average collection period (ACP) and aging of accounts receivable. Knowing the ACP enables the
firm to determine whether there is a general problem with the accounts receivable. The firm has
credit terms of 2/10, net 30 so it would expect its ACP to equal about 30 days. Calculating the ACP
of the ... Show more content on Helpwriting.net ...
If Aero–Strip decides to sell its new invoices to a factor, the total financing available for 90 days is $
35,200. CUSTOMER | AMOUNT | Ace Aviation, Inc.Express ShuttleLomax CharterMiller Aerial
SurveyingPointers Aviation, Inc. | $ 7,290 18,554 2,497 13,121 8,532 | TOTAL | $ 50,000 |
$ 50,000– ($50,000 x 80%)= $ 40,000 Less: reserve ($40,000 x 10%) 4,000 Commission ($40,000 x
2%) 800 TOTAL FINANCING $ 35,200
6. Effective Annual Rate=Total interest paid+Toal fees paidUsabel funds×36590
a. i=9%36590=2.22%
Total interest paid=2.22% × $58,668.49=$ 1,301.96
EAR= $ 1,301.96$58,668.49× 36590=9% b. i= 8%36590=1.97%
Total interest paid=1.97% ×$35,200=$694.36
EAR= $ 694.36+$800$35,200×36590=17.22%
The effective annual rate for pledging accounts receivable and factoring accounts receivable is 9%
and 17.22%, respectively. 7. If I were to represent the commercial bank I would tell Howard that
pledging his accounts receivable is better than factoring because there will be no transfer of the
ownership of the accounts receivable and customer remittances will go directly to the company. In
addition, hiring a credit manager would be

Account Receivables
Accounts receivable, or A/R, represent the cash due to a provider, or physician in this case, by
insurance carriers or the insured patient. To reduce, or decrease, the total balance due, the payments
are applied, or added, to the patients account. In other words, accounts receivable is cash that is
owed to a company or practice by its debtors. Payments due from guarantors, patients, or payers is
known to be accounts receivable. Getting paid in a manner that is timely and correct is something
every practice wishes to achieve. They must do that by managing their accounts receivable. They
also measure accounts receivable, or A/R, in days. To do this, you must calculate by dividing the
total accounts receivable by the average charges daily for the practice. For example, "60 days in
A/R" means that the practice is due payment for the equivalent of 60 days of work. Some practices
handle these accounts receivable by:
–choosing to set goals of collecting one hundred percent of all of the copayments at the time of
service.
–checking the eligibility of every patients insurance prior to each visit so they can find out ... Show
more content on Helpwriting.net ...
–make sure that pending insurance accounts are being worked at aggressively..every month!
–make sure to send out no more than two statements to the patient. Always phone call the patient as
a follow up. If the bill has not been paid by the patient after the first two statements, do not bill a
third statement because it would not be effective at that point.
–look over the aging report of the A/R every month. Compare the accounts receivable to the prior
year and also try and look for any trends.
–run an aged accounts receivable report from the day of service, periodically. This will help you find
any lag times between the day of service and the date of billing.
Accounts receivable seems very confusing to me, but with practice in the medical field, I am sure
that it will become much easier to

Marketing Research
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CFR Quiz
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Page path * Home * / ► My courses * / ► FI–101–Quiz * / ► 20 July – 26 July * / ► CFR Quiz 7
* / ► Review of attempt 1
Review of attempt 1 Started on | Saturday, 15 September 2012, 03:14 PM | Completed on | Saturday,
15 September 2012, 03:14 PM | Time taken | 13 secs | Marks | 0/15 | Grade | 0 out of a maximum of
10 (0%) |
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Top of Form
Question1
Marks: 1
Cash consists of all of the following except
Choose one answer. | a. compensating balances. | | | b. deposits in savings accounts. | | | c. IOUs from
customers. | | | d. money orders from ... Show more content on Helpwriting.net ...
Question11
Marks: 1
Which of the following is a cash equivalent?
Choose one answer. | a. 6–month certificate of deposit | | | b. 60 percent of the common stock of
Fernholtz Corporation | | | c. 60–day U.S. Treasury note | | | d. 100 shares of Caplow Corporation
common stock | |
Incorrect
Marks for this submission: 0/1.
Question12
Marks: 1
A company issues a check for $58 but records it as $85. On the bank reconciliation, the $27 error
should be
Choose one answer. | a. deducted from the balance per books. | | | b. added to the balance per bank. | |
| c. added to the balance per books. | | | d. deducted from the balance per bank. | |
Incorrect
Question13

Marks: 1
Under the allowance method, when a year–end adjustment is made for estimated uncollectible
accounts,
Choose one answer. | a. net income is unchanged. | | | b. liabilities increase. | | | c. total assets are
unchanged. | | | d. total assets decrease. | |
Incorrect
Question14
Marks: 1
For the following definition(s), choose the letter that corresponds to the correct term. Use each letter
only once. a. Accounts receivable | i. Maturity date | b. Aging of accounts receivable | j. Maturity
value | c. Allowance for Uncollectible Accounts | k. Promissory note | d. Cash equivalents | l.

Disadvantages Of Account Receivables
Account receivables are used as a type of asset – financing to determine the outstanding invoices or
the money owed by the customers. The account receivables can help finance companies by boosting
its cash flows. It focuses on trying to collect bills from customers. The unpaid invoices are also
considered in the account receivables and referred as bad debts. Bad debts are debts that customers
are not able to pay either because they are bankrupt. In account receivables financing also known as
factoring, gives the company an amount equal to a reduced value of the unpaid invoices. This type
of financing helps the company to free up the capital that is stuck in unpaid debts. The account
receivables financing companies advances 70 to 90 % of the value of the outstanding invoices, then
the factoring company collect the debts and pays the original company the remainder of the amount
collected minus a fee for the services. This ... Show more content on Helpwriting.net ...
Asset based lending is an on–balance sheet technique and typically comes with significant fees.
Companies commit the majority of their receivables to the program and have limited flexibility
about which receivables are committed. Interest rates on these loans, as you can imagine, are less
than interest rates on an unsecured loan or line of credit because if the borrower defaults the lender
has the ability to seize assets and attempt to recoup their lending costs. If companies goes bankrupt,
companies that cannot meet their financial obligations can either dissolve or reorganize and start
anew. Federal laws provide bankruptcy protection, govern the right to file and have jurisdiction over
all bankruptcy cases. State laws determine what company assets are protected in bankruptcy. A
bankruptcy filing immediately halts a company's creditors from debt collection efforts. Collection
efforts resume when the bankruptcy court allows

A Report on Accounts Receivable on Marysville General...
As the Chief Financial Officer of Marysville General Hospital, I have informed the hospital board
members, that the accounts receivable has quickly approached the 100th day mark. The accounts
receivable had crept from the 70–80 day range within the past few months, which is greater than the
average of 55 days. There are many factors that could be a potential reason as to why the hospital
accounts receivable days are rising, however, collectively the board members will create a plan of
action that will bring the accounts receivable days back in line. It will take cooperation from
everyone including the board members, medical staff, clinical departments, health information
management, business office, and many others. Therefore, each of these departments will be
involved in devising a solution to reduce the accounts receivable crisis.
Before the proposal for a development plan for reducing accounts receivable, the following
departments are requested to submit a current report showing the status of their departments. The
departments are: admissions; registrations; chart documentation; charge capture; claims processing;
payment posting; secondary billing and patient follow–up. All of these reports will provide further
insight as to how each of the departments has performed, and contributed to the increase of accounts
receivable. Additionally, in reviewing these documents, the hospital will analyze the collection data
from the finance department, comparing the past,

2007 04 06 163146 Chapter 7 1
E7–2
(Determine Cash Balance)
Presented below are a number of independent situations.
Instructions
For each individual situation, determine the amount that should be reported as cash.
1.Checking account balance $925,000; certificate of deposit $1,400,000; cash advance to subsidiary
of $980,000; utility deposit paid to gas company $180.
$ 2,325,000
Cash balance of $925,000. Only the checking account balance should be reported as cash. The
certificates of deposit should be reported as a temporary investment, the cash advance to subsidiary
should be reported as accounts receivable, and the utility deposit should be identified as a receivable
from the gas company.
2.Checking account balance $600,000; an overdraft in special ... Show more content on
Helpwriting.net ...
1. Beginning–of–the–year Accounts Receivable balance was $15,000.
2. Net sales (all on account) for the year were $100,000. Jones does not offer cash discounts.
3. Collections on accounts receivable during the year were $70,000.
Instructions
(a) Prepare (summary) journal entries to record the items noted above.
DescriptionDebitCredit
Account Receivable100,000
Sales 100,000
Cash70,000
Account Receivable70,000
Accounts Receivable $100,000 Sales $100,000
Cash $70,000 Accounts Receivable $70,000

(b) Compute Jones' accounts receivable turnover ratio for the year. The company does not believe it
will have any bad debts. (Round answer to 2 decimal places.)
(4.44) times
Accounts Receivable Turnover = Sales / Average Receivables
Beginning Accounts Receivable = $15,000
Add: Sales $100,000
Total Receivables $115,000
Less: Cash Receipts $70,000

Leveraging Accounts Receivable
Accounts receivable represent the money that keeps your business afloat. When you issue an
invoice, you have made a sale. When you get an invoice payment, you have cash flowing into your
accounts. When your accounts receivable file expands, your business is growing.
The down side is that outstanding accounts receivable also represent money that you could be using
for other things, like payroll or increasing inventory. Fortunately, you can free up a good deal of that
money by using accounts receivable factoring.
Tips for Leveraging Accounts Receivable Factoring
Accounts receivable factoring is one way to free up cash to get through cash flow crunches or to
expand your business. Making the most of factoring starts with being smart about customer ... Show
more content on Helpwriting.net ...
You may have had a customer for several years who paid in good order. But, what you may not
know is that customer may have a very poor credit history with every other creditor. Who knows
when that bad credit payment history will extend to you? Don't let sentimentality blind you to
potential problems.
Use credit limits for new customers.
When you decide to extend credit to a new customer, use credit limits at first. This lets you get a
solid picture of their payment habits before extending further credit. You should be up front about
the credit terms and limits. Also provide information on how they can work up to better terms and
limits.
Build a strong relationship with each customer.
When you build a strong, ongoing relationship with a customer, there is a personal connection made.
And it is less likely that a customer is going to do something to jeopardize a close business
relationship.
You need to know the people behind your customer's logo. Follow them on social media. Send
emails just to check in and see how things are going. Make note of birthdays and anniversaries.
Show them that you care.

Use accounts receivable factoring wisely.
Invoice factoring allows you to get cash out of your outstanding invoices so that you can do what
you need to do. It is great for solving a temporary cash flow

Questions On A Company Accountant Design Spreadsheets
Index Numbers Question Attempted Or Not Page No. Q.1 Attempted 2
Q.2 Attempted 2
Q.3 Attempted 3
Q.4 Attempted 4
Q.5 Attempted 4
Q.6 Attempted 5
Q.7 Attempted 5
Q.8 Attempted 8
Q.9 Attempted 12
Q.10 Attempted 13
Q.11 Attempted 14
Q.12 Attempted 17
Q.13 Attempted 18
Q.14 Attempted 19
Q.15 Attempted 20
Q.16 Attempted 21
Q.17 Attempted 21
Q.18 Attempted 23
Q.19 Attempted 23
Q.20 Attempted 24
References 27
The assignment work submitted by my own and the sources which I used have been acknowledged
in the reference list.
Q.1
Q.2
We can do it by go to menu bar in format cells and select currency and then change in numbers
Q.3
In a company accountant design spreadsheets with separate data entry area for further use of data ...
Show more content on Helpwriting.net ...
The essential difference between this inventories systems are following as under.

 The periodic inventory system is generally used for inexpensive goods, while perpetual inventory
system is a computerized record of inventory used for expensive goods and by large store.
 Under the periodic inventory business physically counts its inventory periodically to determine
the quantities on hand, while under the perpetual system the number of inventory units and dollar
amounts are constantly updated.
 In the periodic system the cash register does not keep each & every item that it sells. While in a
perpetual system the cash register is a computer terminal that records sales, updates inventory and
GST records.
 The small retail stores and restaurants mostly use the periodic system. For example, local
restaurants and ice–cream and grocery shops, while large stores, malls and supermarkets use the
perpetual inventory system by bar codes to keep up–to–the minute records of their current inventory.
For example, Coles and Woolworths supermarkets.
Horngren/Accounting/7e,2013
Q.7
Purchase
Under the Periodic System the journal entry appears like DR: Purchases 700,000 CR: Cash or
Accounts

Accounts Receivable In Medical Offices
Accounts receivable or A/R is a term used to denote money owed to a business by customers in
exchange for services rendered but not yet collected. In medical offices, A/R refers to amounts owed
by patients and their third–party payers, such as insurance companies for services provided to
patients. Any payments due from patients, payers or guarantors are A/R. The overall goal of
accounts receivable management is to achieve the shortest collection period possible. Offices use
practice management software or a manual system to track patient accounts activity. Medical
assistants enter each transaction as it occurs, then generate a report at the end of the day called "a
day sheet" which is a total of all patient account transactions daily and

Accounts Receivable and Extermination Services Revenue Essay
Bug–Off Exterminators provides pest control services and sells extermination products
manufactured by other companies. The following six–column table contains the company's
unadjusted trial balance as of December 31, 2011.
BUG–OFF EXTERMINATORS
December 31, 2011
Unadjusted Trial Balance
Cash 17,000
Accounts receivable 4,000
Allowance for doubtful accounts 828
Merchandise inventory 11,700
Trucks 32,000
Accum. depreciation–Trucks –
Equipment 45,000
Accum. depreciation–Equipment 12,200
Accounts payable 5,000
Estimated warranty liability 1,400
Unearned services revenue –
Interest payable –
Long–term notes payable 15,000
D. Buggs, Capital 59,700
D. Buggs, Withdrawals 10,000
Extermination services revenue 60,000
Interest ... Show more content on Helpwriting.net ...
Original cost 32,000
Expected salvage value 8,000
Useful life (years) 4
d. Two items of equipment (a sprayer and an injector) were purchased and put into service in early
January 2009. They are being depreciated with the straight–line method using these facts and
estimates.
Sprayer Injector
Original cost 27,000 18,000
Expected salvage value 3,000 2,500
Useful life (years) 8 5
e. On August 1, 2011, the company is paid $3,840 cash in advance to provide monthly service for an
apartment complex for one year. The company began providing the services in August. When the

cash was received, the full amount was credited to the Extermination Services Revenue account. f.
The company offers a warranty for the services it sells. The expected cost of providing warranty
service is 2.5% of the extermination services revenue of $57,760 for 2011. No warranty expense has
been recorded for 2011. All costs of servicing warranties in 2011 were properly debited to the
Estimated Warranty Liability account.
g. The $15,000 long–term note is an 8%, 5–year, interest–bearing note with interest payable
annually on December 31. The note was signed with First National Bank on December 31, 2011.
h. The ending inventory of merchandise is counted and determined to have a cost of $11,700. Bug–
Off uses a perpetual inventory system.
Required:
1. Use the preceding information to determine amounts for the following items.
a. Correct (reconciled) ending balance of Cash, and the amount of

Managing Accounts Receivable, An Essential Part Of...
Financial managers have typically been involved in the high–level decision making regarding the
financial health of a company. However, the function of the financial manager has changed over
time to include more detailed aspects of the company's cash flow, including accounts receivable.
Accounts receivable is vital to a company's cash flow operations, if you cannot collect the money
from your customers, you cannot pay for materials, expenses, or employees. If your customers are
not paying on time, or not paying whatsoever, a business will inevitably lack the cash flow it
requires to pay its own expenses. Consequently, it is essential for companies to have comprehensive
policies on the managing of their accounts receivable because it has proven to be an essential part of
business activities. The management of accounts receivable has a direct influence on shareholder
value, on the capability of a company to meet its short–term obligations, such as, paying expenses
and creditors. This paper will address how to effectively manage accounts receivable, by use of a
credit policy and why it so critical.
Credit policy refers to procedures that outline how the company will determine which customers are
extended credit and how much, the credit terms, the thresholds to establish on unpaid balances and
how to manage delinquent accounts. A company should have a comprehensive, practical, and
reliable credit policy established, prior to offering credit to its customers.
The amount

Why Adequate Overdue Accounts Receivable?
1. Offer customers purchasing Christmas candy a 10 percent discount if they make payment within
30 days.
Nothing unethical here, however, Affections is having difficulty collecting their accounts receivable
due to a sluggish economy. Although offering this generous discount deal will most likely boost
sales, the chance of accumulating higher uncollectable accounts greatens.
2. Allow a 30–day grace period on all accounts receivable overdue at the end of the year. As these
accounts will no longer be overdue, the company will not need an allowance for overdue accounts.
When an account receivable is determined to be uncollectable it is no longer qualified as an asset
and should be written off. A write off reduced the balance of the customers ... Show more content on
Helpwriting.net ...
Require officers who have borrowed money from the company to repay the amounts owed at
December 31. This would convert into cash the "notes receivable from officers," which now appear
in the balance sheet as noncurrent assets. The loans could be renewed immediately after year–end.
It is hard to say if this is unethical or not, I would say it depends on the agreement between the
officers and Affections. Under the assumption that this was not apart of the agreement, I think it
would be safe to say these officers would not renew their loans with Affections.
5. Present investments in marketable securities at their market value, rather than at cost.
I do not see any accounting or unethical issues with this practice. Securities that are available for
sale are presented on the balance sheet at their current market value.
6. Treat inventory as a financial asset and show it at current sales value.
Although inventory is an asset it is recorded as a cost, anything recorded otherwise would be
unethical and would be hard to report the cost of goods sold once inventory has been depleted.
7. On December 31, draw a large check against one of the company's bank accounts and deposit it in
another company's accounts in a different bank. The check won't clear the first bank until after year–
end. This will substantially increase the amount of cash in bank accounts at

Audit
456 Chapter Eleven
Appendix 11B
Illustrative Audit Case: Keystone Computers & Networks, Inc.
Part III: Substantive Tests–Accounts Receivable and Revenue
This part of the audit case illustrates the manner in which the auditors design substantive tests of
balances. The substantive tests are illustrated for two accounts–receivables and revenue. This aspect
of the audit is illustrated with the following audit documentation: ABC's risk assessment working
paper that combines the auditors' assessments of inherent and control risks into an overall risk of
material misstatement for the assertions. The substantive audit program of accounts receivable and
revenue. The audit sampling plan for the confirmation of accounts receivable. ... Show more content
on Helpwriting.net ...
Financial Statement Date: 12/31/X5
B–6 WL 11/13/X5
Performed by Procedure
10. Review the adequacy of the allowance for uncollectible accounts by performing the following
procedures: a. Review the aged trial balance of accounts receivable with the president. b. Review
confirmation exceptions for indications of disputed amounts. c. Analyze and review trends in the
following relationships: (1) Accounts receivable to net sales. (2) Allowance for bad debts to
accounts receivable. (3) Bad debt expense to net sales. 11. At year–end, review the file of sales
invoices that are waiting to be matched with delivery receipts for any sales transactions that were
not executed and, therefore, should be recorded in the subsequent period. 12. For all sales recorded
in the last week of the year inspect the related delivery receipt to determine that the sale occurred
before 12/31/X5. 13. Review credit memoranda for sales returns and allowances through the last day
of fieldwork to determine if an adjustment is needed to record the items as of year–end. 14. Perform
analytical procedures for sales and accounts receivable including comparison of the following to
prior years and/or industry data: a. Gross profit percentage by month. b. Sales by month by
salesperson. c. Accounts receivable turnover. d. Advertising expense as a percentage of sales. e. Net
receivables as a

What Is MAHINDRA 2.4 Accounts Receivables?
5.2.2.1.4 Accounts Receivable Turnover
Net Sales Accounts Receivables Accounts Receivable Turnover
TATA 36,294.74 1,114.48 32.6
MAHINDRA 38,945.42 2,558.03 15.2
5.2.2.1.5 Collection Period
Period (Days) Accounts Receivable Turnover Collection Period (Days)
TATA 365 32.57 11
MAHINDRA 365 15.22 24
5.2.2.1.6 Inventory Turnover
Cost of Sales Inventory Inventory Turnover
TATA 25,922.90 4,802.08 5.4
MAHINDRA 27,854.49 2,437.57 11.4
5.2.2.1.7 Conversion Period
Period Inventory Turnover Conversion Period
TATA 365.00 5.40 67.6
MAHINDRA 365.00 11.43 31.9
5.2.2.2 Long Term
5.2.2.2.1 Total Debt to Total Capital
Total Debt Total Capital Total Debt to Total Capital
TATA 20,080.97 27,181.55 0.74
MAHINDRA 2,620.38 21,769.22 0.12
5.2.2.2.2 Long Term Debt ... Show more content on Helpwriting.net ...
But the real reflection of the performance of the management lies in the Operating profit margin
(OPM) and in this case M&M has done fairly well and their OPM for FY2014–15 is similar to their

last years OPM. Whereas Tata Motors has increased their non–operating expense by spending to the
tune of 4K crore on R&D (for Jaguar and Land Rover) and has hence garnered losses for FY 2014–
15 (OPM: TM –5.4% M&M 10.4%). Although

Total Accounts Receivable
Bradmark Wholesale
General Supply
ACL Case Study
This paper contains the summary of the details and results of the audit tests on
Bradmark's Revenue and Expenditure Cycles. The audit tests were performed through the ACL
Program.
2005
Rachelle Cultura | Trixia Ebol | Christine Fonseca
Mary Rose Samas | Nadaine Tongco
Ross & Specter Co.
October 24, 2012
1 | P a g e
REVENUE CYLCE
Assessment of Internal Controls over the Revenue Cycle
The assessment of Bradmark's internal controls over its revenue cycle procedures were done through
the analysis of the processes each department is undertaking.
For the Sales Department, it is but right that the clerk will seek the approval of the credit manager
for customers
with ... Show more content on Helpwriting.net ...
After taking into account the results for these two tests, the should–be balance for the Total Sales of
the period was computed to be $5,317,470.36.
Valuation or Allocation
The total Accounts Receivable balance in the records of $4,752,257.70 was verified by setting a
filter of
"Remit_Num = 0" and then getting the total amount due. By doing this, only those sales which do
not yet have a remittance advice are part of the accounts receivable. The figure below is the outcome
of this procedure.
4 | P a g e
However, if the difference between the total sales and the total cash received (for the period ending
December
31, 2004) was computed, then the total Accounts Receivable balance would be $4,578,008.14. This
indicates that the Accounts Receivable is misstated in the financial statements.
Moreover, from the analyse tab and the function "Age", an aging of the Accounts Receivable was
performed.
The summary of this analysis can be seen in this figure:

5 | P a g e
It should be noted that based on this test, the allowance for doubtful accounts should be adjusted to
reflect the actual accounts, which can be considered as uncollectible, i.e. those that are already over
90 days. The balance would then be $1,945,870.20.
6 | P a g e
Compared to the current estimation method of the Allowance for Doubtful Accounts of Bradmark,
this method of aging the Accounts Receivable is more appropriate. This also ensures that the

Financial Receivable Turnover ( Net Sales / Ending...
Accounts Receivable Turnover: (Net Sales / Ending Accounts Receivable) Accounts receivable
turnover measures the efficiency of a business in collecting its credit sales during the period. Apple
Inc. had an accounts receivable turnover ratio of 14.32 in 2012, 13.04 in 2013 and 10.47 in 2014.
HP's ratio was 4.75, 4.56, and 5.33 in the past three years. Since HP has lower values than Apple on
accounts receivable turnover, it because that HP has a high amount of cash receivables for collection
from its various debtors. HP should pay more attention on their credit term to avoid the lack of
payments from debtors. Days ' Sales Uncollected: (Accounts Receivable / Net Sales *365) From
year 2012 to 2014, Apple had increased days ' sales uncollected from 25.49 to 34.86, while HP kept
stable but higher than Apple. In fiscal year 2014, HP's days' sales uncollected was 45.30. Days '
sales uncollected indicate how quickly a company can convert its accounts receivable into cash.
Apple would take about 35 days to collect cash from ending accounts receivable, while it would
take HP about 45 days. HP has a higher days' sales uncollected ratio than Apple, which means it had
a large number of accounts receivable in hand. If the customers don't pay back, those accounts
would go to bad debt. Thus, Apple had a better management at cash than HP. Debt–To Equity Ratio:
(Total liabilities / Total equity) In fiscal year 2014, Apple had a 1.08 debt–to equity ratio, meaning
that debt holders contributed

Alcatel Accounting Case Essay
A. What is an account receivable? What other names does it go by?
Accounts receivable are amounts owed by customers on account. They result from the sale of goods
and services on credit. These receivables are generally expected to be collected within 30 to 60 days.
They are typically the most significant type of claim held by a company. Accounts receivable and
notes receivable resulting from sales are also known as trade receivables. Accounts receivable
resulting from sales are referred to as trade receivables in Alcatel's financial statements.
B. How do accounts receivable differ from notes receivable?
Notes receivable represent claims for which formal instruments of credit are issued as evidence of
debt. A credit instrument ... Show more content on Helpwriting.net ...
For most firms the optimal amount of uncollectibles is not zero. For Alcatel to have no uncollectible
accounts they would have to use a very strict credit policy and would most likely not be able to sell
to as many as customers. Enforcing this policy would be very costly and they would likely eliminate
many customers who would pay their bills but would not be able to pass a credit check. On the other
hand if Alcatel's credit policy is too loose they risk having too many customers who will not pay or
will pay late. Alcatel was able to manage some of these risks and generate cash immediately by
selling a portion of their receivables to banks and financial firms. Other steps that can be taken to
manage the risk of uncollectible accounts include: requiring risky customers to provide letters of
credit or bank guarantees, requiring particularly risky customers to pay cash on delivery, asking
potential customers for references from banks and suppliers to determine their payment history, and
continually checking the financial health of regular customers.
E. Process
Allowance For Doubtful Accounts (Trade Receivable)
4) Write–offs € 115 € 928 Dec. 31, 2001 279 3) Bad Debt
1,092 Dec. 31, 2002 Trade Receivables – Gross
Dec. 31, 2001 9,033 19,657 2) Collections
1) Sales 16,547 115 4)

Confirmation Procedure of Account Receivable
Steps In Confirmation Process
The steps in the process of confirming receivables follow: Step–1. Obtain Aged Schedule of
Accounts Receivable
The auditor should obtain an aged schedule of accounts receivable as of the confirmation date. He or
she should apply the following procedures to this schedule:
Determine that totals are correct.
Compare all or a selected sample of account balances with the account balances in the accounts
receivable subsidiary ledger.
Investigate credit balances. Step–2. Select Accounts for Confirmation
Auditors have used, and some continue to use, judgment in selecting accounts for confirmation.
Statistical sampling methods, however, are ideal for the selection process.
Whatever method of selection is ... Show more content on Helpwriting.net ...
The confirmation requests always should remain in the auditor's custody or under his or her
supervision until mailed. Step–4. Process Responses to Confirmation Requests
When confirmation replies are received, the auditor should do the following:
[1]. Enter for each account the following:
Date received.
Amount confirmed.
[2]. If the amount confirmed differs from the account balance, the following should be done:
Photocopy confirmation reply.
Give photocopy to client and request that the difference be reconciled and provide documentation
for reconciling items.
Review documentation for reconciling items.
If documentation is satisfactory, enter reasons for difference in receivable confirmation schedule.
[3]. If the amount confirmed differs from the account balance and the client cannot satisfactorily
reconcile the difference, the auditor should do the following:
If the difference is small, the auditor may ignore it. If there are a significant number of small
differences, however, the auditor should analyze them. If the analysis of the significant number of
small differences indicates a deficiency in the receivable controls, the auditor may have to apply
additional auditing procedures to satisfy himself or herself of the accounts receivable balance.
If the difference is significant, request the client to correspond with the debtor. Make certain the
correspondence states that the

Erp Systems, Microsoft Dynamics Gp10 And Sap Erp Release 6.0
Introduction
This project is the analysis of two different ERP systems, Microsoft Dynamics GP10 and SAP ERP
Release 6.0. More specifically, the comparison of the accounts receivables and reporting functions
in both systems are part of this in–depth analysis, concluding with a summery with considerations
on the better system for managing the accounts receivables.
Software Platforms
Microsoft
More than 41,000 customers throughout the world use Microsoft Dynamics GP 10, which is the
software solution discussed in this analysis. Microsoft Dynamics goes beyond basic financials and
operations functions, and is a complete Enterprise Resource Planning (ERP) solution. Microsoft
thrives on showing their system requires lower implementation and ... Show more content on
Helpwriting.net ...
The financial connections with customers who use output of the organization are handled through
Accounts receivable (AR). This maintains personal accounts of the creditors and maintain various
sub–ledgers such as control accounts, payments etc. as a part of General Ledger (GL).
Microsoft Accounts Receivable
For transactions in Receivables Management, you can create assignments and enter transaction
dimension codes for the distribution accounts that are linked to an account class. Transactions can be
saved with analysis information to a single or recurring batch prior to posting. The analysis
information created for transactions in the Analytical Inquiry windows can be displayed. The
process of validating transactions with analysis information is also explained. These are the
following commands controlled by the account receivables manager.
Microsoft's system allows for the controls of accounting to be handled in three major work
processes:
Posting setup and control, includes information about how to specify posting account numbers for
cost categories in project budgets and for fees assigned to projects. Also information about how to
create batches for transactions manually, how to modify posting account distributions for
transactions, and how to post multiple batches at once are included.
Revenue recognition includes how to create and use revenue recognition cycles to recognize
revenue for multiple

Teatable MC Ch7 10 Revised 2013
Chapter 7 Inventories
6. Ending inventory is made up of the oldest purchases when a company uses
a.
first–in, first–out
b.
last–in, first–out
c.
average cost
d.
retail method
11. The inventory method that assigns the most recent costs to cost of goods sold is
a.
FIFO
b.
LIFO
c.
Average
d.
specific identification 12. Inventory costing methods place primary emphasis on assumptions about
a.
flow of goods
b.
flow of costs
c.
flow of goods or flow of costs depending on the method
d.
neither flow or goods or flow of costs 13. The inventory costing method that reports the most
current prices in ending inventory is
a.
FIFO
b.
Specific identification
c.
LIFO

d.
Average cost
The following lots of a particular commodity were available for ... Show more content on
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a. debit Sales; credit Cash
b.
debit Cash; credit Accounts Receivable
c.
debit Cash; credit Sales
d.
debit Accounts Receivable; credit Cash
43. Accompanying the bank statement was a credit memo for a short–term note collected by the
bank for the company. This item is a(n)
a.
deduction from the balance per company's records
b.
addition to the balance per bank statement
c.
deduction from the balance per bank statement
d.
addition to the balance per company's records
47. Which of the following items that appeared on the bank reconciliation did not require an
adjusting entry?
a.
bank service charges
b.
deposits in transit
c.
NSF checks
d.
A check for $630, recorded in the check register for $360.
48. What entry is required in the company's accounts to record outstanding checks?
a.
debit Accounts Receivable; credit Cash
b.
debit Cash; credit Accounts Receivable
c.
debit Cash; credit Accounts Payable
d.
none
49. Accompanying the bank statement was a debit memo for an NSF check received from a

customer. This item would be included on the bank reconciliation as a(n)
a.
deduction from the balance per company's records
b.
addition to the balance per bank statement
c.
deduction from the balance per bank statement
d.
addition to the balance per company's records
55. Which of the following would be subtracted from the balance per bank on a bank reconciliation?
a.
Outstanding checks
b.
Deposits in transit
c.
Notes collected

Accounts Receivable and Franklin Company Essay
The transactions completed by Franklin Company during January, its first month of operations, are
listed below. Assume that Franklin Company uses the following journals: Cash Receipts (CR), Cash
Payments (CP), Revenue (R), Purchases (P), and General (G). Assume that it uses Accounts
Receivable and Accounts Payable Subsidiary Ledgers as well as a General Ledger. Indicate by
letters which journal would be used for each transaction. Also indicate if the entry requires a posting
to a subsidiary ledger.
Payments (CP), Revenue (R), Purchases (P), and ... Show more content on Helpwriting.net ...
Assume that Franklin Company uses the following journals: Cash Receipts (CR), Cash Payments
(CP), Revenue (R), Purchases (P), and General (G). Assume that it uses Accounts Receivable and
Accounts Payable Subsidiary Ledgers as well as a General Ledger. Indicate by letters which journal
would be used for each transaction. Also indicate if the entry requires a posting to a subsidiary
ledger.
The transactions completed by Franklin Company during January,

Accounts Receivable and Internal Control
Assignment
Please note you have three assignments for this week. The case study, the weekly assignment and
continue working on the final draft for the individual research project.
Case Study (Knapp book):
Dollar General Stores
Questions 1–4
Weekly Assignment:
Textbook (Boynton book): Complete and submit the following questions for grading:
14–26
14–28
15–23
15–27
16–24
16–33
14–26 (Analytical procedures) the following data was taken from the production and accounting
records for Casuccio Manufacturing, Inc. Unaudited 20X9
Audited 20X8
Audited 20X7
Operating Data
Capacity in Units
450,000
450,000
450,000
Production in Units
450,000
400,000
300,000
Inventory in Units
32,000
28,000
21,000
Financial Data ($000)

Total Revenues ... Show more content on Helpwriting.net ...
Calculate the following information and ratios for years 2, 3, 4, and 5:
–Purchases
–Accounts Payable turn days
–Cost of goods sold to accounts payable
–Current ratio
b. Describe the implications of the resulting ratios for the auditor's audit strategy in year 5. What
specific audit objectives are likely to be misstated? How should the auditor respond in terms of
potential audits tests?
15–27 (Internal control evaluation–Cash disbursements) Management has requested a review of
internal control over disbursements for parts and supplies purchased at manufacturing plants. Cash
disbursements are centrally processed at corporate headquarters based on disbursement vouchers
prepared and approved at the manufacturing plants. Each manufacturing plant purchases parts and
supplies for its own production needs.
In response to management's request, a thorough evaluation of internal control over disbursements
for manufacturing plant purchases of parts and supplies is being planned. As a preliminary step in
planning the engagement, each plant manger has been requested to provide a written description of
his or her plant's procedures for processing disbursement vouchers for parts and supplies. Presented
below are some excerpts from one of the written descriptions.
1. The purchasing department acts on purchase requisitions issued by

Lesson 16
Deborah Merna
Lesson 16, Course 657
1. As someone with more knowledge of the balanced scorecard than almost anyone else in the
company, you have been asked to build an integrated balanced scorecard. In your scorecard, use
only performance measures listed previously. You do not have to use all of the performance
measures suggested by the managers, but you should build a balanced scorecard that reveals a
strategy for dealing with the problems with accounts receivable and with unsold merchandise.
Construct the balanced scorecard following the format used in Exhibit 12–8. Do not be concerned
with whether a specific performance measure falls within the learning and growth, internal business
process, customer, or financial perspective. ... Show more content on Helpwriting.net ...
In other words, the problem may not be incorrect charge account bills at all. The problem may be
that the procedures for collecting overdue accounts are not working properly. Or, the problem may
be that the procedures for reviewing credit card applications let through too many poor credit risks.
If so, this would suggest that efforts should be shifted from reducing charge account billing errors to
improving the internal business processes dealing with collections and credit screening. And in that
case, the balanced scorecard should be modified.
(b) Suppose that the performance measures for the average age of accounts receivable, bad debts,
and unsold inventory improve, but total profits do not. Explain why this might happen. Assume in
your answer that the explanation lies within the company. This evidence is inconsistent with three
hypotheses. The first of these is If the average age of receivables declines, then profits will
increase. The second hypothesis is If the written–off accounts receivable decrease as a percentage
of sales, then profits will increase. The third hypothesis is If unsold inventory at the end of the
season as a percentage of cost of sales declines, then profits will increase. Again, there are a
number of possible explanations for the lack of results consistent with the hypotheses. Managers
may have decreased the average age of receivables by simply writing off old accounts earlier than
was done

Accounts Receivable and Correct Marks
1
Marks: 5
Which of the following events involves an accrual?
Choose one answer. | a. Recording interest that has been earned but not received | | | b. Recording
supplies that have been purchased with cash but not yet used. | | | c. Recording revenue that has been
earned but not yet collected in cash. | | | d. A. and C. | |
Correct
Question 2
Marks: 5
Which resource provider typically receives first priority when resources are divided as part of a
business 's liquidation?
Choose one answer. | a. stockholders | | | b. owners | | | c. the company 's managers | | | d. creditors | |
Correct
Question 3
Marks: 5
Which of ... Show more content on Helpwriting.net ...
| | | c. Allowance for doubtful accounts. | | | d. The present value of accounts receivable. | |
Correct
Question 3
Marks: 5
The practice of reporting the net realizable value of receivables in the financial statements is
commonly called:
Choose one answer. | a. the cash flow method of accounting for bad debts. | | | b. the direct write–off
method of accounting for bad debts. | | | c. the allowance method of accounting for bad debts. | | | d.
Both a and b are correct. | |
Correct
Question 4
Marks: 5
What does the accounts receivable turnover ratio measure?
Choose one answer. | a. How quickly the accounts receivable balance increases. | | | b. How quickly
inventory turns into accounts receivable. | | | c. How quickly accounts receivable turn into cash. | | |

d. Average balance of accounts receivables. | |
Correct
Question 5
Marks: 5
Which of the following businesses would most likely have the longest operating cycle?
Choose one answer. | a. A national pharmacy chain. | | | b. A discount store. | | | c. A producer of
wine. | | | d. A chain of pizza restaurants. | |
Incorrect
1
Marks: 5
What is the name used for the type of secured bond that requires a pledge of a designated piece of
property in case of default?
Choose

Casa de Diseno Essay
Integrative Case 7, Casa de Diseno, involves evaluating working capital management of a furniture
manufacturer. Operating cycle, cash conversion cycle, and negotiated financing needed are
determined and compared with industry practices. The student then analyzes the impact of changing
the firm's credit terms to evaluate its management of accounts receivable before making a
recommendation.
a. Operating cycle (OC) average age of inventory  average collection period  110 days  75
days  185 days Cash conversion cycle (CCC) OCaverage payment period 185
days30 days 155 days Resources needed   $11,253,425
B. Industry OC 83 days  75 days 158 days Industry CCC 158 days39 days ...
Show more content on Helpwriting.net ...
f. The other sources of financing available include both unsecured and secured sources.
Unsecured Sources:
Short–term self–liquidating bank loans–usually used to help with seasonal needs where the loan is
repaid as receivables are collected.
Single–payment bank notes–normally a short–term (30 days to 9 months) loan to be repaid on the
end of the loan period.
Line of credit–a loan much like a credit card in that the borrower can draw down the money as
needed and make various payments. The loan must often be paid in full at some point within each
year.
Revolving credit agreement–a guaranteed amount of funds available to the borrower. The borrower
usually pays a commitment fee to the bank to compensate them for having the funds available on
demand.
Commercial paper–a 3–day to 270–day loan sold as a security to the lender.
Secured Sources:
Pledging accounts receivable–a lender loans money on the basis of the creditworthiness of the
borrower's customers who bought on account. The lender advances the money to the borrower in an
amount discounted from the book value of the receivables. When the borrower collects the
receivables payments, the money is remitted to the lender.
Factoring accounts receivable–selling the firm's accounts receivable to a lender at a discount to the
book value of the receivables. The factor normally receives the payment directly from
the

Accounts Receivable In Medical Office

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