Accounts Receivable Presentation and Disclosure Develop a List of Substantive

question 32

Essay

Accounts receivable presentation and disclosure Develop a list of substantive tests to test whether pledged,discounted,assigned,and related-party accounts receivable are properly disclosed.

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Definitions:

Accounts Receivable

Money owed to a business by its clients for goods or services delivered but not yet paid for.

Bad Debts

Amounts owed to a company that are not expected to be received, often due to the debtor being unable to pay. These are often written off as an expense.

Financing Activities

Transactions that result in changes in the size and composition of the equity and borrowings of an entity, as reported in the cash flow statement.