A balance sheet is an accounting tool used to summarize the financial status of a business or other entity. It generally lists assets on one side and liabilities on the other, and both sides are always in balance. Assets and liabilities are divided into short- and long-term obligations including cash accounts such as checking, money market, or government securities. At any given time, assets must equal liabilities plus owners equity. An asset is anything the business owns that has monetary value. Liabilities are the claims of creditors against the assets of the business. A balance sheet is usually prepared each month, quarter of a year, annually, or upon sale of the business, in order to show the overall condition of the company.
Accounts Receivable means a debt owed by a debtor or customer to an enterprise for goods or services received. It usually represents money owed by customers in exchange for goods or services delivered to or used by them, but not yet paid for. Therefore, accounts receivable is an accounting transactions that deals with the billing of a customer for goods and services they have ordered. Income due from investments is not an account receivable. Account receivable is also known as a note receivable.
Colorado Balance Sheet Support Schedule regarding Accounts Receivable is a crucial document that provides detailed information about a company's accounts receivable balances. This schedule highlights the various types of accounts receivable, their outstanding amounts, aging, and specific support details. This support schedule is designed to provide a comprehensive overview of the company's financial position related to accounts receivable. By analyzing this document, stakeholders can assess the liquidity, aging trends, and creditworthiness of a company. The Colorado Balance Sheet Support Schedule regarding Accounts Receivable encompasses different types of accounts receivable, including but not limited to: 1. Trade Accounts Receivable: This category represents the outstanding balances due from customers who have purchased goods or services on credit. It includes both current and non-current receivables, reflecting the portion of sales yet to be collected over a specific period. 2. Notes Receivable: Notes receivable are legally binding documents formalizing a borrower's obligation to repay a loan. This type of account receivable usually arises from financing activities and may include interest payments and repayment terms. 3. Allowance for Doubtful Accounts: Also known as the provision for bad debts, the allowance for doubtful accounts is a contra-asset account that reflects the estimated amount of uncollectible receivables. This account provides an estimate of potential losses due to customer defaults. 4. Advances and Deposits: This category includes any advances or deposits made by customers towards future product or service purchases. It represents the prepayment received by a company before providing goods or services. The Colorado Balance Sheet Support Schedule provides a breakdown of these accounts receivable types and further details such as invoice numbers, customer names, due dates, aging categories, and collection efforts. This information assists in assessing the credit risk associated with each account. Additionally, the schedule may display the Amortized Discount or Premium on Notes Receivable, representing the difference between the face value and book value of discounted or premium notes. Moreover, information on any accounts receivable pledged as collateral or factored to third parties may be included to provide a comprehensive overview. Overall, the Colorado Balance Sheet Support Schedule regarding Accounts Receivable serves as a vital tool in evaluating a company's financial health, its ability to collect outstanding balances, and its overall liquidity position. Stakeholders, including creditors, investors, and management, rely on this schedule to make informed decisions and understand the company's creditworthiness.
