FA1 Practice question set 6

1.rafe & Co have total accounts receivable at the end of their accounting period of $45,000. Of these it is discovered that one, Mr Xiun who owes $790, has been declared bankrupt, and another who gave his name as Mr Jones has totally disappeared owing Araf & Co $1,240.

The provision of credit facilities

The majority of businesses will sell to their customers on credit and state a defined time within which they must pay (a credit period). 

The main benefits and costs of doing so are as follows:

The Allowance for Doubtful Accounts

Allowance

1.The allowance for doubtful accounts is a reduction of the total amount of accounts receivable appearing on a company’s balance sheet, and is listed as a deduction immediately below the accounts receivable line item

2.The allowance for doubtful accounts represents management’s best estimate of the amount of accounts receivable that will not be paid by customers. 

What is 'Accounting' and 'accountant'

What is an 'Accountant'

An accountant is a professional person who performs accounting functions such as

audits or financial statement analysis .

Accountants can either  be employed with an accounting firm, a large company with an internal accounting department, or can set up an individual practice

OurMission and Vision

Our Vision

To implement accounting standards of credit open tuition bd at professional level  student in order to enhance the knowledge of global student and eventually to up-gradate the accounting and financial management of  international level.

What is Credit Rating? How is it different from auditing?

Credit Rating is an independent opinion on the ability and willingness of a borrower in discharging its obligations as principal and interest as per time schedule. These opinions are provided by the rating agencies that have a license from the regulatory body, Securities and Exchange Commission.

Auditing provides an opinion as to whether the books of accounts are maintained as per the accounting standard and how far the accounts reflect true and fair position of an organization on a particular date.