Are you looking for a Medical Biller/Accounts Receivable
February 25, 2009 by Accounts Receivable Factoring
Filed under More Factoring Answers
Experienced medical biller/accounts receivable looking for healthcare provider to work from home. Working on credentials for certified medical biller and coder.
Invoice Discounting
accounting true/false?
February 22, 2009 by Accounts Receivable Factoring
Filed under More Factoring Answers
I. TRUE /FALSE
1. A subsidiary ledger is a group of control accounts which provides information to the managers for controlling the operation of the company.
2. An accounts receivable subsidiary ledger has all the detailed information about the cash sales to individual customers.
3. The accounts payable subsidiary ledger provides detailed information about amounts owed to creditors.
4. Control accounts are always located in the general ledger.
5. Special journals are used to record unique transactions which do not occur very often.
6. A cash receipts journal can be used to record all transactions involving cash coming into the business, regardless of the source.
7. Using special journals can save time in posting because column totals are often posted rather than individual entries.
8. An accounting information system involves data collection, data processing, and information dissemination.
9. Only transactions that cannot be entered in a special journal are recorded in the general journal.
10. A highly automated computerized system of accounting eliminates the need for internal control.
11. Management is responsible for establishing a system of internal control.
12. The responsibility for keeping the records for an asset should be separate from the physical custody of that asset.
13. The responsibility for ordering, receiving, and paying for merchandise should be assigned to different individuals.
14. Firms use physical, mechanical, and electronic controls primarily to safeguard its assets.
15. The petty cash fund eliminates the need for a bank checking account.
16. If a company deposits all its receipts in the bank and pays all its bills by check, then the monthly bank statement balance will always agree with the company’s record of its checking account balance.
17. All reconciling items in determining the adjusted cash balance per books require the depositor to make adjusting journal entries to the Cash account.
18. The custodian of the petty cash fund has the responsibility of recording a journal entry every time cash is used from the fund.
19. A debit memorandum will show the collection of a note receivable by the bank.
20. To obtain maximum benefit from a bank reconciliation, the reconciliation should be prepared by an employee who has no other responsibilities pertaining to cash.
21. Both accounts receivable and notes receivable represent claims that are expected to be collected in cash.
22. If a company uses the allowance method to account for uncollectible accounts, the entry to write off an uncollectible account only involves balance sheet accounts.
23. Allowance for Doubtful Accounts is a contra asset account.
24. A note receivable is a written promise by the maker to the payee to pay a specified amount of money at a definite time.
25. The maturity date of a 1-month note receivable dated June 30 is July 30.
26. The two key parties to a note are the maker and the payee.
27. When the due date of a note is stated in months, the time factor in computing interest is the number of months divided by 360 days.
28. Both the gross amount of receivables and the allowance for doubtful accounts should be reported in the balance sheet.
29. The account Allowance for Doubtful Accounts is closed out at the end of the year.
Account Receivables Collection
