While accounts receivable is reflected on the trial balance sheet as one line item, the account balance may represent many individual customer accounts that must be managed, tracked and reconciled.

Allowance for doubtful accounts is a common contra asset listed on a company's balance sheet under accounts receivable. When a company sells its products or services to customers on credit, the ...

Learn how accounts payable are recorded on a balance sheet, why they’re classified as liabilities and their role in managing ...

Analyze accounts receivable information on a company's balance sheet carefully. Receivables offer confidence of future cash flow, but they are not a guarantee.

A contra account is a general ledger account used to reduce the value of a related account. Learn about the types of contra accounts and why they're important.

Online Exclusive: Accounting Basics for Small Contractors — The Balance Sheet Assets = Liabilities + Owners’ Equity Assets are the things that a company owns. There are current assets and long-term ...

Accounts payable, considered a short-term debt obligation owed by a company to suppliers and creditors, are listed on a company's balance sheet.

Investors can detect when the reserves for doubtful accounts are inadequate by comparing accounts receivable to net income and revenue. When the balance sheet item is growing at a faster pace than ...

Though a balance sheet is intended to be a gateway to understanding a company's financial position, there are lots of places on one for valuable information to hide. Here's where to look.

Accounts receivable is the income derived from credit accounts. For the balance sheet, it’s the total amount of income to be received that’s logged into the books at the close of the fiscal year.

Learn how accounts payable are recorded on a balance sheet, why they’re classified as liabilities and their role in managing short-term debts.

Reviewed by JeFreda R. Brown Investors should interpret accounts receivable information on a company's balance sheet as money that the company has a reasonable assurance of being paid by its ...