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 North Dakota Balance Sheet Support Schedule Regarding Accounts Receivable is a financial statement that provides a comprehensive breakdown of an organization's accounts receivable balances, showcasing the extent of outstanding customer debts and the associated support provided by the state of North Dakota. This schedule outlines the various types and subcategories of accounts receivable to offer a detailed analysis of the organization's financial health. Keywords: North Dakota, Balance Sheet, Support Schedule, Accounts Receivable, financial statement, outstanding customer debts, organization, financial health. There are typically three types of North Dakota Balance Sheet Support Schedules Regarding Accounts Receivable: 1. Current Accounts Receivable: This category includes all outstanding customer debts that are expected to be collected within the next year. It showcases the short-term financial obligations of the organization and emphasizes its liquidity position. These accounts receivable are vital in determining the organization's immediate cash flow. 2. Long-term Accounts Receivable: This category encompasses all outstanding customer debts that are not expected to be collected within the next year. These accounts receivable reflect the organization's long-term financial obligations and indicate the potential risk associated with delayed collections. Monitoring this category is crucial for assessing the organization's overall financial stability and creditworthiness. 3. Bad Debts Allowance: This specific subcategory within the North Dakota Balance Sheet Support Schedule Regarding Accounts Receivable represents the reserve set aside to cover potential customer debts that are deemed uncollectible. It serves as a precautionary measure, allowing organizations to mitigate the impact of bad debts on their financial statements. The Bad Debts Allowance indicates the organization's awareness of potential credit risks and its preparation to absorb any losses. Overall, the North Dakota Balance Sheet Support Schedule Regarding Accounts Receivable is a vital component of an organization's financial reporting. It offers valuable insights into the organization's outstanding customer debts, their expected timeline of collection, and the protective measures put in place to sustain financial stability. Monitoring and analyzing this schedule is crucial for both internal decision-making processes and external stakeholders, ensuring a comprehensive understanding of an organization's accounts receivable management.
