U2, AOS 2: Lesson 5 - Accounts Receivable

Question 1

Accounts Receivable record is…

Answer 1

…a subsidiary Accounting record that records each individual transaction with each individual Account Receivable and shows the balance owed by that Account Receivable at any point in time.

Question 2

Accounts Receivable Schedule is…

Answer 2

…a listing of the name and balance of each Accounts Receivable record.

Question 3

Accounts receivable balance formula =

Answer 3

Opening Balance
+ Credit Sales (inc. GST)
- Receipts from Accounts Receivable
= Closing balance

Question 4

When calculating the AR balance, the opening balance can be found…

Answer 4

On the previous month’s Balance Sheets

Question 5

What qualitative characteristic is supported by the preparation of the Accounts Receivable Schedule?

Answer 5

Faithful representation