The cash can be received as an account receivable which is the right to receive cash from the customer in the future. Usually, account receivables are collected rather in a short period of time. Next is notes receivables, they represent a written promise that the customer will pay a fixed amount of principle plus interest by the maturity date. The maturity date is the by which the note is due. The written document will serve as evidence of the debt. The notes receivable usually take more time than it does with account receivables though. Then there are other receivables. These are just a makeup of categories that include any other type of receivable where cash will be received in the future. Business receive checks and online payments so it is important to have internal control to watch over the assets. On the balance sheet the accounts receivable are reported as current assets. However, there is always a chance that the receivable will never paid in the full amount or at all. So it is important that an estimate be made up for the amount that is unlikely to be collected. What this report does is it reports it as a credit balance in a receivable account such as an allowance for doubt able …show more content…
They are tangible assets that can be used to produce revenue in the operation of the business. They are often called Property, Plant, and equipment or fixed assets. Some examples of plant assets are buildings, land, furniture, and equipment. Compare to other assets, plant assets are unique because they are a long term asset. This means when a plant asset are purchased its expenses aren’t immediately recorded. This is because the cost of the asset will be recorded over the period of time the asset is expected to be used. This can also be called depreciation, the process which a business spreads the plants assets cost over its useful life. This however, doesn’t apply to land. It is not recorded due to the fact land doesn’t decline when it used. When finding the deprecation you would have to use the matching method principle. This ensures that all of the expenses are matched against the revenue during that