reserve for bad debts; allowance for bad debts

简明释义

坏帐准备金

英英释义

例句

1.Our audit revealed that the reserve for bad debts was insufficient, leading to potential financial risks.

我们的审计显示坏账准备金不足，可能导致财务风险。

2.The company decided to increase its reserve for bad debts to account for potential losses from unpaid invoices.

公司决定增加其坏账准备金以应对未支付发票可能造成的损失。

3.When preparing the financial statements, it is crucial to adjust the allowance for bad debts based on historical data.

在准备财务报表时，根据历史数据调整坏账准备金是至关重要的。

4.The accountant recommended a higher reserve for bad debts due to the economic downturn affecting many clients.

会计建议由于经济衰退影响许多客户，应提高坏账准备金。

5.At the end of the fiscal year, we reviewed our allowance for bad debts to ensure it accurately reflected our receivables.

在财年结束时，我们审查了我们的坏账准备金，以确保它准确反映了我们的应收账款。

作文

In the world of finance and accounting, managing risks is a crucial aspect of ensuring the sustainability and profitability of a business. One significant risk that companies face is the possibility of customers defaulting on their payments. To mitigate this risk, businesses often set aside a portion of their revenue as a financial safeguard. This practice is known as creating a reserve for bad debts; allowance for bad debts. These terms refer to an accounting measure that estimates the amount of money a company might lose due to unpaid invoices or loans. By establishing this reserve, companies can better prepare for potential losses, maintain accurate financial statements, and ensure compliance with accounting standards.The need for a reserve for bad debts; allowance for bad debts arises from the inherent uncertainty in customer payment behavior. For instance, even reliable customers may face financial difficulties that prevent them from fulfilling their obligations. By anticipating these scenarios, a company can allocate resources more effectively and maintain a healthier cash flow. This proactive approach not only protects the business's bottom line but also instills confidence among investors and stakeholders.To create a reserve for bad debts; allowance for bad debts, companies typically analyze their historical data regarding customer payments. They may look at factors such as the industry average for default rates, the creditworthiness of their customer base, and economic conditions that could impact payment behaviors. Based on this analysis, businesses can estimate the percentage of accounts receivable that may become uncollectible and set aside an appropriate reserve.For example, if a company has $100,000 in accounts receivable and estimates that 5% may not be collected, it would create a reserve for bad debts; allowance for bad debts of $5,000. This amount would be recorded as an expense on the income statement and as a contra asset on the balance sheet, reducing the net value of accounts receivable. This accounting treatment ensures that the financial statements reflect a more realistic view of the company's assets and liabilities.Furthermore, having a reserve for bad debts; allowance for bad debts is essential for maintaining a company's reputation. When businesses fail to account for potential losses, they may face severe financial repercussions that can lead to bankruptcy or insolvency. On the other hand, by being transparent about their risk management practices, companies can build trust with their customers and suppliers. This trust can translate into better relationships and potentially more favorable credit terms.In conclusion, the concept of a reserve for bad debts; allowance for bad debts is a vital component of sound financial management. It allows businesses to prepare for potential losses, maintain accurate financial reporting, and foster trust with stakeholders. As companies navigate the complexities of the modern economy, understanding and implementing this practice will be crucial for long-term success and stability. By effectively managing bad debt reserves, businesses can not only protect their interests but also contribute to a more resilient financial ecosystem overall.

在金融和会计的世界中，管理风险是确保企业可持续性和盈利能力的关键方面。企业面临的一个重大风险是客户可能违约不付款。为了减轻这种风险，企业通常会将一部分收入作为财务保障。这个做法被称为设立坏账准备；坏账准备金。这些术语指的是一种会计措施，用于估计公司可能因未付发票或贷款而损失的金额。通过建立这一准备金，公司可以更好地为潜在损失做好准备，保持准确的财务报表，并确保遵守会计标准。设立坏账准备；坏账准备金的必要性源于客户支付行为固有的不确定性。例如，即使是可靠的客户也可能面临财务困难，从而无法履行其义务。通过预见这些情况，公司可以更有效地分配资源，并保持更健康的现金流。这种主动的做法不仅保护了企业的利润底线，还增强了投资者和利益相关者的信心。为了创建坏账准备；坏账准备金，公司通常会分析其关于客户付款的历史数据。他们可能会考虑客户群体的信用状况、违约率的行业平均水平以及可能影响付款行为的经济条件等因素。基于这些分析，企业可以估计可能无法收回的应收账款百分比，并相应地设置准备金。例如，如果一家公司有10万美元的应收账款，并估计其中5%可能无法收回，则会创建一项坏账准备；坏账准备金为5000美元。该金额将在损益表中记录为费用，并在资产负债表中作为对资产的抵消项目，减少应收账款的净值。这种会计处理确保财务报表反映出公司资产和负债的更现实的视图。此外，拥有坏账准备；坏账准备金对于维护公司的声誉至关重要。当企业未能考虑潜在损失时，可能会面临严重的财务后果，甚至导致破产或资不抵债。另一方面，通过对其风险管理实践保持透明，公司可以与客户和供应商建立信任。这种信任可以转化为更好的关系和更有利的信用条款。总之，坏账准备；坏账准备金的概念是健全财务管理的重要组成部分。它允许企业为潜在损失做好准备，保持准确的财务报告，并促进与利益相关者的信任。在公司应对现代经济的复杂性时，理解和实施这一做法对于长期成功和稳定至关重要。通过有效管理坏账准备，企业不仅可以保护自身利益，还可以为整体更具韧性的金融生态系统做出贡献。