Download presentation
Presentation is loading. Please wait.
Published byDennis Sharp Modified over 8 years ago
1
Copyright ©2012 Delmar, Cengage Learning. All rights reserved. Chapter 20 Accounts Payable and Accounting Procedures
2
Copyright ©2012 Delmar, Cengage Learning. All rights reserved. Accounts Payable (A/P) Amounts owed by the practice to suppliers or other service providers – For expenditures: acquired material, property, and labor exchanged for money
3
Copyright ©2012 Delmar, Cengage Learning. All rights reserved. Invoices Company details Invoice number Dates Client dates Fees Payment terms
4
Copyright ©2012 Delmar, Cengage Learning. All rights reserved. Petty Cash
5
Copyright ©2012 Delmar, Cengage Learning. All rights reserved. Accounting Basic accounting formula: Assets – liabilities = net worth
6
Copyright ©2012 Delmar, Cengage Learning. All rights reserved. Accounting Ratios Accounts receivable ratio Current A/R balance ÷ avg. month’s gross production Gross collections ratio Total payments ÷ Total Charges Net collections ratio Total payments ÷ Total Charges, minus write-offs Cost ratio Total expenses ÷ Number of procedures
7
Copyright ©2012 Delmar, Cengage Learning. All rights reserved. Write-offs Anything deemed “uncollectable” Examples – Bad debts – Professional courtesy discounts – Contractual discounts
8
Copyright ©2012 Delmar, Cengage Learning. All rights reserved. Cost-Benefit Analysis Identify costs Identify benefits Compare costs against methods
9
Copyright ©2012 Delmar, Cengage Learning. All rights reserved. Financial Records Income statements – Demonstrates profit and expenses for a given month – Most commonly generated year-end report
10
Copyright ©2012 Delmar, Cengage Learning. All rights reserved. Financial Records Balance sheets – Statement of financial position – Displays assets, liabilities, and owner’s equity – Different ways to format and display balance sheets
Similar presentations
© 2024 SlidePlayer.com. Inc.
All rights reserved.