Receivables

What is Account receivable

• An amount of money due, obtained from individuals or groups, expected to be collected as cash

• Amount of money generated from the sales of inventory

• One of bonds in company to transfer their obligation to third parties

• No other options

3 Aspects related to account receivable, except

• Recognizing

• Valuation

• Write off

• Entrance

Aspects for account receivable is

• Recognition, Valuation, Measurement

• Valuation, Write off, Measurement

• Recognition, Valuation, Write off

• Recognition, Write off, Evaluation

Account receivable will arise when

• Cash sales

• Credit sales

• Asset disposal

• Assets exchange

Accounting method for uncollectible accounts are, except

• Direct write-off

• Allowance

• Direct write off and allowance

• Direct allowance

Why companies sell receivables ? Because

• They are not the only source of cash

• Collection often consume time and cost

• Collection never consume time and cost

• They want to be acquired by other company

Factor is

• Sales of receivables

• Sales of plant assets

• Sales of account payable

• Sales of product

Finance company or bank that buys receivables from businesses and then collects the payments directly from the customers is

• Factor

• Fractor

• Facor

• Fator

Promissory notes may be used, except

• In settlement of accounts payable

• individuals and companies lend or borrow money

• amount of the transaction and the credit period exceed normal limits

• In settlement of accounts receivable