Builder's Guide to Accounting 05

Question 1

1. How do you account for BAD DEBTS?

Answer 1

See p 63, Ch 5

Question 2

2. The only way to find out which jobs are making or losing money is to:

Answer 2

ANALYZE your sales records by the type of work you do.

Question 3

3. To analyze sales, you must be able to look at your receipts for a PARTICULAR TYPE OF WORK and compare YOUR RESULTS THERE to:

Answer 3

the rest of your business.

Question 4

4. What is a SUMMARY OF CAHS RECEIPTS?

Answer 4

It is NOT a summary of billings nor or earned income; it SHOWS CASH RECEIPTS ONLY.
This is ESSENTIAL for CASH BUDGETING: planning for future available funds.

Question 5

5. What is the format for the SUMMARY OF CASH RECEIPTS?

Answer 5

Cust     Cash        % of 
Name   Rec'd       total
             from         cash
             Cust         rec'd
Andy   2815         40%
Carey  2320        23%
John    3453         32%
All other xxxx      xxxx
               xxxxxx   100%

Question 6

6. What is included in the ALL OTHER category of the SUMMARY OF CASH RECEIPTS?

Answer 6

Income from REPAIRS & IMPROVEMENTS, MATERIAL SALES, etc.

Question 7

7. What is the benefit of the income from REPAIRS & IMPROVEMENTS, MATERIAL SALES, etc?

Answer 7

this regular income helps cover payroll and inventory during slow periods.

Question 8

8. How do you add detail to the SUMMARY OF CASH RECEIPTS?

Answer 8

by breaking down the ALL OTHER category into its components, i.e., REPAIRS & IMPROVEMENTS, MATERIAL SALES, etc.