Communicate the Result to the Client

question 2

Essay

Communicate the result to the client.The communication with the client should not result in a misunderstanding.While discussions with the client may be suitable,it is recommended by the AICPA's Statements on Standards for Tax Services that the communication be written where issues are important,unusual or complicated.Many firms require that conclusions be communicated in writing.

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Definitions:

Credit Sales

Transactions where goods or services are sold and delivered, but payment is deferred to a later date, creating receivables for the seller.

Factors Receivables

The process of selling accounts receivable to a third party (factor) at a discount in exchange for immediate cash.

Accounts Payable

The amounts owed by a company to suppliers or creditors for goods and services received.

Cost of Goods Sold

Expenses directly tied to the production process of goods a company markets, including both materials and labor costs.