What do you mean by receivables?
Receivables, also referred to as accounts receivable, are debts owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.
What are settlement accounts?
A settlement account is an account through which a financial entity can perform any financial operations such as the transfer of funds from the account, receiving funds to the account and servicing credits.
What are different types of payment terms?
Standard payment terms
- PIA: Payment in advance.
- Net 7, 10, 15, 30, 60, or 90: Payment expected within 7, 10, 15, 30, 60, or 90 days after the invoice date.
- EOM: End of month.
- 21 MFI: 21st of the month following invoice date.
- COD: Cash on delivery.
- CND: Cash next delivery.
- CBS: Cash before shipment.
- CIA: Cash in advance.
What are the three types of receivables?
What Are the Types of Receivables? Generally, receivables are divided into three types: trade accounts receivable, notes receivable, and other accounts receivable.
What is another word for receivables?
What is another word for receivable?
| account receivable | balance due |
|---|---|
| bill | debt |
| invoice |
What is a settlement invoice?
What is an invoice settlement? For accounts payable and accounts receivable, invoice settlement means that an invoice balance was possibly partially paid, and the balance due was adjusted to zero. The adjustment may be a credit memo or debit memo.
Who prepare the final account?
Who prepares a final account? Quantity surveyors generally prepare final accounts, in the manner that is best suited to the particular project, with the original contract sum as the starting point.
What are invoice terms?
What are invoice payment terms? Invoice payment terms spell out how you expect to be paid, and might include details like: accepted forms of payment (maybe you won’t take credit cards) the currency you deal in, if you work across borders. late-payment penalties, if you charge them.
What are payment terms in an invoice?
Terms of payment is the length of time given to a buyer to pay off the amount due. It could be an upfront deposit, c.o.d., or a deferred payment of 30 days or more. Common invoice terms are Net 30 which means payment is due within 30 days of the invoice date.
What are bonds payable and cash equivalents?
What are Bonds Payable? Bonds payable are recorded when a company issues bonds to generate cash. Cash Equivalents Cash and cash equivalents are the most liquid of all assets on the balance sheet. Cash equivalents include money market securities, banker’s acceptances. . As a bond issuer, the company is a borrower.
How does an irredeemable bond work?
To get a thought of how an irredeemable bond works, suppose a corporation has $100 million in irredeemable bonds with a coupon rate of 10 percent. The rate of interest steadily drops over a period to 5 percent. The corporate is currently paying $10 million per annum in interest payments.
What happens to the carrying value when a bond is issued?
When a bond is issued at a discount, the carrying value is less than the face value of the bond. When a bond is issued at par, the carrying value is equal to the face value of the bond. This is also the same as the price of the bond, and the amount of cash that the issuer receives.
What does it mean when a bond is called?
Only Treasury bonds issued before 1985 are subject to being called. When a bond is called, the U.S. Treasury states the date when the bond will stop paying interest. Reporting all of the interest earned over the life of the security in the year that it reaches final maturity, is redeemed, or otherwise disposed.