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 New Mexico Balance Sheet Support Schedule Regarding Accounts Receivable is a crucial document that provides a comprehensive overview of the financial health of a business or organization. It specifically focuses on the accounts receivable section, which represents the outstanding amounts owed by customers or clients. This support schedule in New Mexico is designed to detail the specific accounts receivable balances, classify them according to their nature, and assess their collect ability. It is essential for accurately reporting financial information and determining the overall liquidity and solvency of an entity. Key components included on the New Mexico Balance Sheet Support Schedule Regarding Accounts Receivable are: 1. Accounts Receivable Classification: This schedule distinguishes between current and non-current accounts receivable. Current receivables refer to amounts expected to be collected within the next fiscal year, while non-current receivables indicate longer-term outstanding obligations. 2. Aging Analysis: The support schedule breaks down accounts receivable based on their age, typically presented in 30-day increments. This analysis offers valuable insights into the collect ability of outstanding balances. It helps identify potential collection issues or risks associated with overdue payments. 3. Provision for Doubtful Accounts: To account for potential bad debts or uncollectible receivables, the schedule includes a provision for doubtful accounts. This provision is an estimation of the amount expected to remain uncollectible, ensuring a realistic valuation of accounts receivable. 4. Review of Collections History: The support schedule may incorporate a review of the collections' history, identifying any patterns, trends, or anomalies in the collection of receivables. This analysis can assist in evaluating the effectiveness of credit policies, customer payment behavior, and overall creditworthiness. 5. Legal Actions or Disputes: If there are any legal actions or significant disputes related to accounts receivable, these details are disclosed in the schedule. This information highlights potential risks and their possible impact on the collect ability of outstanding balances. Different types of New Mexico Balance Sheet Support Schedules Regarding Accounts Receivable may include: 1. Standard Support Schedule: This is the typical support schedule format, covering all the necessary elements mentioned above to present a comprehensive overview of accounts receivable. 2. Delinquent Accounts Schedule: This type of schedule focuses specifically on delinquent accounts, which are outstanding balances that surpass the agreed payment terms. It provides additional details on aged receivables, collections efforts, and potential recovery methods. 3. Major Customers or Clients Schedule: If an organization has significant customers or clients with a significant impact on their accounts receivable, a specialized support schedule may be prepared, focusing solely on the balances and associated risks associated with these major stakeholders. Overall, the New Mexico Balance Sheet Support Schedule Regarding Accounts Receivable acts as a vital tool in analyzing the financial condition of a business or organization, providing valuable insights into the collect ability of outstanding receivables and aiding decision-making processes related to credit management and cash flow projections.
