allowance method

简明释义

备抵法

英英释义

例句

1.Using the allowance method 拨备法 helps companies prepare for potential losses.

使用拨备法有助于公司为潜在损失做好准备。

2.Many organizations prefer the allowance method 拨备法 for its accuracy in predicting credit losses.

许多组织更喜欢拨备法，因为它能准确预测信用损失。

3.Under the allowance method 拨备法, businesses can better match expenses with revenues.

在拨备法下，企业可以更好地将费用与收入匹配。

4.The accountant explained how the allowance method 拨备法 works during the audit.

审计期间，会计解释了拨备法的运作方式。

5.The company decided to use the allowance method 拨备法 for estimating bad debts in their financial statements.

公司决定在财务报表中采用拨备法来估算坏账。

作文

The allowance method is a crucial accounting technique used to manage and report bad debts in financial statements. This approach allows businesses to estimate the amount of accounts receivable that may not be collected. By incorporating an estimated allowance for doubtful accounts, companies can present a more accurate picture of their financial health. This method contrasts with the direct write-off method, where bad debts are only recorded when they are deemed uncollectible. The allowance method provides a proactive way to handle potential losses, ensuring that financial reports reflect expected future cash flows more realistically.In practice, the allowance method involves creating a contra asset account called 'Allowance for Doubtful Accounts.' This account is used to offset the accounts receivable balance on the balance sheet. When a company estimates that a certain percentage of its receivables will be uncollectible, it makes an adjusting entry to increase the allowance account. For example, if a company has $100,000 in accounts receivable and estimates that 5% will not be collected, it would record a $5,000 allowance for doubtful accounts.One of the main advantages of using the allowance method is that it adheres to the matching principle in accounting, which states that expenses should be matched with the revenues they help generate. By recognizing bad debt expense in the same period as the related sales revenue, businesses can provide a more accurate representation of their profitability. This is particularly important for investors and stakeholders who rely on financial statements to assess a company's performance.Moreover, the allowance method enhances the reliability of financial reporting. Stakeholders can trust that the reported figures take into account the potential risks associated with accounts receivable. This method also allows for better cash flow management, as companies can anticipate potential losses and adjust their operations accordingly. For instance, a company might tighten its credit policies or enhance its collection efforts based on the trends observed in its allowance for doubtful accounts.However, implementing the allowance method requires careful estimation and judgment. Businesses must regularly review and adjust their estimates based on historical data, economic conditions, and changes in customer behavior. If a company overestimates its allowance, it may understate its income, while underestimating it could lead to unexpected losses in the future. Therefore, maintaining accurate records and continuously analyzing receivables is essential for effective use of this method.In conclusion, the allowance method is a vital tool for businesses to manage accounts receivable and report bad debts accurately. It provides a systematic approach to estimating potential losses, enhances the reliability of financial statements, and supports better decision-making. By understanding and applying the allowance method, companies can improve their financial health and maintain transparency with their stakeholders.

“准备金法”是用于管理和报告财务报表中坏账的重要会计技术。这种方法使企业能够估计可能无法收回的应收账款金额。通过纳入预计的坏账准备，企业可以更准确地呈现其财务健康状况。这种方法与直接冲销法形成对比，后者仅在坏账被认为不可收回时才记录。准备金法提供了一种积极处理潜在损失的方法，确保财务报告更真实地反映预期的未来现金流。在实践中，“准备金法”涉及创建一个名为“坏账准备”的抵消资产账户。该账户用于抵消资产负债表上的应收账款余额。当公司估计其应收账款的一定百分比将无法收回时，会进行调整分录以增加准备金账户。例如，如果一家公司有100,000美元的应收账款，并估计5%将无法收回，则会记录5,000美元的坏账准备。使用“准备金法”的主要优点之一是它遵循会计中的配比原则，即费用应与其产生的收入相匹配。通过在与相关销售收入相同的期间确认坏账费用，企业可以更准确地反映其盈利能力。这对于依赖财务报表评估公司业绩的投资者和利益相关者尤为重要。此外，“准备金法”增强了财务报告的可靠性。利益相关者可以信任报告的数字考虑了应收账款相关的潜在风险。这种方法还允许更好的现金流管理，因为企业可以预测潜在损失并相应调整其运营。例如，一家公司可能会根据其坏账准备账户中观察到的趋势收紧信用政策或加强催收工作。然而，实施“准备金法”需要仔细的估计和判断。企业必须定期审查并根据历史数据、经济条件和客户行为的变化调整其估计。如果公司高估了其准备金，可能会低估其收入，而低估则可能导致未来意外损失。因此，保持准确的记录并持续分析应收账款对于有效使用此方法至关重要。总之，“准备金法”是企业管理应收账款和准确报告坏账的重要工具。它提供了一种系统的方法来估计潜在损失，增强财务报表的可靠性，并支持更好的决策。通过理解和应用“准备金法”，公司可以改善其财务状况，并与利益相关者保持透明。