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.
The Illinois Balance Sheet Support Schedule Regarding Accounts Receivable is a structured document that provides a comprehensive overview of an organization's accounts receivable data. This schedule is primarily used to assess the financial health, liquidity, and overall performance of a company. It lists the various types of accounts receivable and their corresponding balances, allowing stakeholders to analyze the organization's ability to collect outstanding payments. Keywords: Illinois, balance sheet, support schedule, accounts receivable, financial health, liquidity, performance, types of accounts receivable, balances, outstanding payments. Different types of Illinois Balance Sheet Support Schedules Regarding Accounts Receivable: 1. Trade Receivables: This category includes amounts owed by customers or clients for goods or services provided by the organization within the normal course of business. It represents the core revenue stream for the company. 2. Non-Trade Receivables: Non-trade receivables encompass amounts owed by individuals or entities that are not directly related to the organization's core operations. This may include loans to employees, interest receivables, or other non-operational monetary claims. 3. Allowance for Doubtful Accounts: This section of the balance sheet support schedule reflects an estimated amount that is likely to become uncollectible. It is essential for assessing the realistic value of accounts receivable and adjusting the financial statements accordingly. 4. Bad Debt Expense: This categorization represents the expenses incurred due to the write-off of uncollectible accounts. It indicates the financial impact of defaulted payments on the organization's profitability. 5. Provision for Credit Losses: Provision for credit losses is an estimated reserve set aside by the organization to cover potential future non-payment from customers. It acts as a buffer against unexpected defaults or economic downturns. 6. Aging of Receivables: This segment of the support schedule classifies the accounts receivable based on the length of time they have been outstanding. It provides insights into the organization's collection efficiency and the overall quality of its customer base. 7. Secured Receivables: These are accounts receivable that are backed by collateral, such as assets or property, provided by the debtor to mitigate the risk of non-payment. This category is essential for evaluating the security and recoverability of outstanding receivables. 8. Unfilled Receivables: Unfilled receivables refer to the revenue that has been recognized by the organization but not yet invoiced to the customer. It highlights the amount of revenue yet to be collected and its impact on the balance sheet. 9. Concentration of Accounts Receivable: This section identifies the significant customers or clients responsible for a substantial portion of the accounts receivable balance. It enables the assessment of credit risk associated with heavy reliance on a few customers. 10. Factored Receivables: Factored receivables indicate the portion of accounts receivable that has been sold or assigned to a financial institution or factor. This arrangement allows the organization to receive immediate cash flow by transferring the collection responsibility to a third party. In conclusion, the Illinois Balance Sheet Support Schedule Regarding Accounts Receivable is a crucial financial statement providing a granular breakdown of the types and balances of accounts receivables. It assists in evaluating a company's financial position, risk exposure, and potential cash flow from outstanding debts.
