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.
Harris Texas Balance Sheet Support Schedule Regarding Accounts Receivable is a comprehensive financial document that provides a detailed breakdown of the company's accounts receivable balances. It assists in identifying the outstanding amounts owed to the company by its customers. This schedule plays a crucial role in assessing the liquidity and financial health of Harris Texas. The Harris Texas Balance Sheet Support Schedule Regarding Accounts Receivable includes various categories, each serving a specific purpose. These categories may vary depending on the company's specific requirements, but some common types of schedules include: 1. Aging Analysis: This section of the support schedule provides an analysis of accounts receivable based on their age. An aging analysis classifies outstanding receivables into different time intervals, such as current, 30 days, 60 days, 90 days, and over 90 days. It helps the management to identify any potential issues with slow-paying or delinquent customers. 2. Bad Debt Provision: The bad debt provision section estimates the amount of receivables that are likely to become uncollectible. It involves a careful evaluation of historical data, customer payment trends, and economic factors that may impact the convertibility of outstanding balances. This provision is essential for adequately reflecting the realistic value of accounts receivable on the balance sheet. 3. Allowance for Doubtful Accounts: The allowance for doubtful accounts represents an estimate of the portion of accounts receivable that is not expected to be collected. It aims to match the revenue and expenses more accurately. The support schedule quantifies this allowance based on the company's historical collection experience and an assessment of customer creditworthiness. 4. Credit Risk Assessment: Another essential aspect of the Harris Texas Balance Sheet Support Schedule is evaluating the credit risk associated with accounts receivable. This involves maintaining detailed records of customer credit scores, payment histories, and any past defaults. Determining the creditworthiness of customers helps the company gauge the potential risk of non-payment or late payment. 5. Collection Efficiency: The support schedule may include a section representing the company's collection efficiency. This involves calculating key performance indicators such as days sales outstanding (DSO), which measures the average time it takes for the company to collect payment from its customers. Monitoring DSO assists in identifying any issues with the company's credit policies, collection procedures, or customer payment behaviors. Overall, the Harris Texas Balance Sheet Support Schedule Regarding Accounts Receivable is a crucial tool that provides a comprehensive analysis of the company's accounts receivable. It aids in understanding the financial position of the company, identifying potential risks, and making informed decisions regarding credit policies, bad debt provisioning, and collection strategies.Harris Texas Balance Sheet Support Schedule Regarding Accounts Receivable is a comprehensive financial document that provides a detailed breakdown of the company's accounts receivable balances. It assists in identifying the outstanding amounts owed to the company by its customers. This schedule plays a crucial role in assessing the liquidity and financial health of Harris Texas. The Harris Texas Balance Sheet Support Schedule Regarding Accounts Receivable includes various categories, each serving a specific purpose. These categories may vary depending on the company's specific requirements, but some common types of schedules include: 1. Aging Analysis: This section of the support schedule provides an analysis of accounts receivable based on their age. An aging analysis classifies outstanding receivables into different time intervals, such as current, 30 days, 60 days, 90 days, and over 90 days. It helps the management to identify any potential issues with slow-paying or delinquent customers. 2. Bad Debt Provision: The bad debt provision section estimates the amount of receivables that are likely to become uncollectible. It involves a careful evaluation of historical data, customer payment trends, and economic factors that may impact the convertibility of outstanding balances. This provision is essential for adequately reflecting the realistic value of accounts receivable on the balance sheet. 3. Allowance for Doubtful Accounts: The allowance for doubtful accounts represents an estimate of the portion of accounts receivable that is not expected to be collected. It aims to match the revenue and expenses more accurately. The support schedule quantifies this allowance based on the company's historical collection experience and an assessment of customer creditworthiness. 4. Credit Risk Assessment: Another essential aspect of the Harris Texas Balance Sheet Support Schedule is evaluating the credit risk associated with accounts receivable. This involves maintaining detailed records of customer credit scores, payment histories, and any past defaults. Determining the creditworthiness of customers helps the company gauge the potential risk of non-payment or late payment. 5. Collection Efficiency: The support schedule may include a section representing the company's collection efficiency. This involves calculating key performance indicators such as days sales outstanding (DSO), which measures the average time it takes for the company to collect payment from its customers. Monitoring DSO assists in identifying any issues with the company's credit policies, collection procedures, or customer payment behaviors. Overall, the Harris Texas Balance Sheet Support Schedule Regarding Accounts Receivable is a crucial tool that provides a comprehensive analysis of the company's accounts receivable. It aids in understanding the financial position of the company, identifying potential risks, and making informed decisions regarding credit policies, bad debt provisioning, and collection strategies.
