Question

th BUSI 1043 Formative U x B Assignment 1 (1) macroeco macro unit exercise id pring/BBA/BUSI_1043/ON-CAMPUS/Resources/BUS%201043 Formative_Unit Exercises.pdf e ! © YORKVILLE WWW.YORKVILLECA Unit Exercises 3 Question 1 Explain how and where accounts receivable are reported on the financial statements, and what the difference is between accounts receivable and notes receivable. Question 2 John Snow's chequebook lists the following: Cheque # Item Date Nov 622 1 4 9 13 14 18 623 6 24 625 1626 627 Horizon Utility Dividends Canadian Tire Petro-Canada 1 Cash Faith of the Seven Church Affordable Housing Paycheque BLEIBES The November bank statement shows:

accounting

Answer 1

Accounts receivable will arise when company sells goods to customers on credit i.e.,goods will be delivered first and cash will be paid by customer later after a period of time. Accounts receivable will be shown in the balance sheet at asset side. Bad debts and provision for bad debts will be deducted from accounts receivable.

Difference between accounts receivable and notes receivable

S.no	Accounts receivable	Notes receivable
1	It is the amount which arrised from credit sales.	It is an instrument issued as evidence for debt.
2	It will be for 3 to 4 months.	It can be for 1 year or more than one year.
3	It is a current asset.	It may be current asset or non current asset.