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 District of Columbia Balance Sheet Support Schedule Regarding Accounts Receivable refers to a financial document that outlines the status of accounts receivable for the District of Columbia government. This schedule provides a detailed breakdown of all outstanding receivables owed to the District of Columbia, representing funds due from individuals, businesses, or other entities for goods or services provided. The support schedule includes several key elements necessary for financial analysis and accurate reporting. These elements may vary in different versions of the balance sheet support schedule, such as: 1. Account Classification: The schedule categorizes accounts receivable based on their nature, such as taxes receivable, fines and penalties, permits and licenses, intergovernmental receivables, or other revenue sources. This classification ensures proper tracking and management of different types of receivables. 2. Aging of Receivables: To provide a clear snapshot of the receivables' status, the schedule may present an aging analysis. It categorizes outstanding receivables based on their age, usually in time periods such as 30 days, 60 days, 90 days, and beyond. This assists in evaluating the effectiveness of collection efforts and identifying potential risks or issues with specific receivables. 3. Allowance for Doubtful Accounts: The schedule may present an allowance for doubtful accounts, which is an estimate of the portion of accounts receivable that may never be collected. This allowance ensures that the balance sheet accurately reflects the net realizable value of accounts receivable. The estimation methodology and rationale behind the allowance may also be specified in the schedule. 4. Collections and Write-Offs: The support schedule may detail the collections made during a specific period, showcasing the payments received against outstanding receivables. Additionally, it may highlight any write-offs or adjustments made to the accounts receivable balance due to uncollectible amounts. These figures provide insights into the effectiveness of the District's collection efforts and the overall financial health of accounts receivable. 5. Compliance with Accounting Standards: The District of Columbia Balance Sheet Support Schedule Regarding Accounts Receivable ensures compliance with relevant accounting standards, such as the Generally Accepted Accounting Principles (GAAP) or specific governmental accounting guidelines. This ensures transparency and accuracy in reporting, meeting the requirements set forth by regulatory bodies. By maintaining a comprehensive Balance Sheet Support Schedule Regarding Accounts Receivable, the District of Columbia can effectively track, analyze, and manage outstanding receivables. This document allows financial professionals and stakeholders to assess the District's liquidity, financial risk, and collection efficiency while ensuring compliance with accounting standards.The District of Columbia Balance Sheet Support Schedule Regarding Accounts Receivable refers to a financial document that outlines the status of accounts receivable for the District of Columbia government. This schedule provides a detailed breakdown of all outstanding receivables owed to the District of Columbia, representing funds due from individuals, businesses, or other entities for goods or services provided. The support schedule includes several key elements necessary for financial analysis and accurate reporting. These elements may vary in different versions of the balance sheet support schedule, such as: 1. Account Classification: The schedule categorizes accounts receivable based on their nature, such as taxes receivable, fines and penalties, permits and licenses, intergovernmental receivables, or other revenue sources. This classification ensures proper tracking and management of different types of receivables. 2. Aging of Receivables: To provide a clear snapshot of the receivables' status, the schedule may present an aging analysis. It categorizes outstanding receivables based on their age, usually in time periods such as 30 days, 60 days, 90 days, and beyond. This assists in evaluating the effectiveness of collection efforts and identifying potential risks or issues with specific receivables. 3. Allowance for Doubtful Accounts: The schedule may present an allowance for doubtful accounts, which is an estimate of the portion of accounts receivable that may never be collected. This allowance ensures that the balance sheet accurately reflects the net realizable value of accounts receivable. The estimation methodology and rationale behind the allowance may also be specified in the schedule. 4. Collections and Write-Offs: The support schedule may detail the collections made during a specific period, showcasing the payments received against outstanding receivables. Additionally, it may highlight any write-offs or adjustments made to the accounts receivable balance due to uncollectible amounts. These figures provide insights into the effectiveness of the District's collection efforts and the overall financial health of accounts receivable. 5. Compliance with Accounting Standards: The District of Columbia Balance Sheet Support Schedule Regarding Accounts Receivable ensures compliance with relevant accounting standards, such as the Generally Accepted Accounting Principles (GAAP) or specific governmental accounting guidelines. This ensures transparency and accuracy in reporting, meeting the requirements set forth by regulatory bodies. By maintaining a comprehensive Balance Sheet Support Schedule Regarding Accounts Receivable, the District of Columbia can effectively track, analyze, and manage outstanding receivables. This document allows financial professionals and stakeholders to assess the District's liquidity, financial risk, and collection efficiency while ensuring compliance with accounting standards.
