Accounts receivable is somtimes a 'Suspense' account. An
advance is given by debiting this account for purchase of
some article or item for which bill is not received
immediately. After the expenditure is incurred and proper
Invoice or Bill is received , this amount is reversed to
the debit of the expenditure head or after Asset creation
(in case of buying a fixed asset). In brief, accounts
receivable may be a temporary advance and is expected to be
wiped out, shortly.
RECEIVABLES MEANS TO BE RECEIVED, ACCOUNT RECEIVABLES
INCLUDES THE AMOUNTS WHICH HAS TO BE RECEIVED AGAINST SALES
FOR WHICH RECEIVER HAS PROMISED TO PAY IN DUE COURSE OF
TIME , THE PERSON OR THE FIRM IS CALLED DEBTORS
Account receivable simply means bill receivable
When a company purchase good or services from another company
then the seller ask the purchaser to accept the bill.
and the bill accepted by purchaser is known as bill
15. Which statement about ADRs is true?
a) An ADR is the receipt for the shares of a foreign
based corporation held in U.S bank
b) ADRs do not trade on U.S exchange
c) ADRs give non U.S investors a way to buy non US
company shares in the US market.
d) The holder of an ADR is entitled to only the
dividends for the security