Top 7 most asked Accounts Receivable Question and Answer

Accounts Receivable

Q1. How to define inter company transaction in accounts receivable?

Inter company 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 the another entity all inter company transactions are eliminated before preparing the final balance sheet of the group company.

Q2. Explained about accounts receivable in accounting?

Efficient management of cash flow is crucial to a business of any size. An essential activity in the process is accounts receivable management. Accounts receivable services is the money owed to the company by customers for the sales of goods or services done to them. These are a company’s income and help them take care of its expenses, thus making their management is essential and necessary.

Q3. What is reconciliation statement and investment banking?

Reconciliation statement is formally known as a tool which is used to reconcile the bank passbook and our passbook investment banking is a instrument which is used by the financial organization to take a better investment decision like issuing IPO stocks bonds etc.

Q4. What are the three golden rules of accounts?

The three golden rules of accounts are:
  1. Personal accounts debit the benefit receiver credit the benefit giver
  2. Real accounts - debit what comes in credit what goes out.
  3. Nominal accounts - debit all expenses and losses credit all incomes and gains

Q5. What are the goals of accounts receivable?

As sales occurs every customer is not able to pay the bills that's where the accounts receivable are occurs the goal of accounts receivable is to maintain summarize and record all the transactions related to unpaid account or future collections or accounts receivable.

Q6. what is the table that is used for aging bucket report what is the main purpose of this report?

Time periods you define to age your debit items. Aging buckets are used in the aging reports to see both current and outstanding depth items for example you can define an aging bucket that includes all debit items that are one to thirty days past due.

normal table used for this report that is less than 30 days 30 days to 60 days 60 to 90 days 90 to 180 days and greater than 180 days.

Q7. What is auto invoice what are the set of steps for auto invoice?

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

Setup steps
  1. Define the line ordering rules
  2. Define the grouping rules - attached the line ordering rules to the grouping rules.
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