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Accounting - Understanding Receivables and Payables

Learn the essential accounting skills of how to understand and handle receivables, payables, and account liabilities.

Accounting
Free Course
Accountants worldwide are highly valued and well paid professionals who make a big difference to the businesses they work for. If you want to become a successful accountant, you must understand receivables and payables. This quick course will give you a full run through of these essential concepts, from how to record credit card collections to how to account for borrowed money, so that you can give your accounting career a real boost today.

Description

Modules

Outcome

Certification

View course modules

Description

This course will show you exactly how to account for and manage receivables and payables. The course starts with receivables, first showing you the main techniques for how to calculate a bad debt provision amount based on a company’s history. This will include a step-by-step overview of both the aging schedule and the allowance method for calculating receivables. You will then be shown how to manage the bad debt amount for the financial reports. This will include a demonstration of how to post a provision and process the realized loss of revenue when it becomes overdue.

Next, the course will show you how to account for payables. Here, you will learn how to make provision for known liabilities, how to estimate warranty liabilities, and how to plan for the contingent liabilities that result from legal issues. The course will then show you how to raise short term finance through promissory notes. This will include a clear explanation of the differences between interest bearing notes and discounted notes, with examples of calculations of the postings for each. Finally, the course will explain the crucial use of the accounts receivable turnover in accounts receivables ratios, along with the relevance of the liquidity level they represent.

If you’re interested in accounting as a future career, or if you’re a business professional seeking to better manage your accounts, then this clear and simple course is the one for you. Receivables and payables are essential tasks of any accounting desk, so learning how to understand and manage them is an absolute must for any aspiring accountant. With this free course, you’ll learn these vital skills in just 3 hours. So get started, and by the end of the week you’ll have an excellent new skill.

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Learning Outcomes

Having studied this course learner will be able to:


  • Account for uncollectable accounts receivable under the allowance method;
  • Record credit card sales and collections; - Define liabilities, current liabilities, and long-term liabilities;
  • Define and account for clearly determinable, estimated, and contingent liabilities;
  • Account for notes receivable and payable, including calculation of interest;
  • Account for borrowing money using an interest-bearing note versus a non interest-bearing note;
  • Analyze and use the financial results - accounts receivable turnover and the number of days' sales in accounts receivable.

Certification

All Alison courses are free to enrol, study and complete. To successfully complete this Certificate course and become an Alison Graduate, you need to achieve 80% or higher in each course assessment. Once you have completed this Certificate course, you have the option to acquire official Certification, which is a great way to share your achievement with the world. Your Alison Certification is:

Ideal for sharing with potential employers - include it in your CV, professional social media profiles and job applications
An indication of your commitment to continuously learn, upskill and achieve high results
An incentive for you to continue empowering yourself through lifelong learning

Alison offers 3 types of Certification for completed Certificate courses:

Digital Certificate - a downloadable Certificate in PDF format, immediately available to you when you complete your purchase
Certificate - a physical version of your officially branded and security-marked Certificate, posted to you with FREE shipping
Framed Certificate - a physical version of your officially branded and security-marked Certificate in a stylish frame, posted to you with FREE shipping

All Certification is available to purchase through the Alison Shop. For more information on purchasing Alison Certification, please visit our faqs. If you decide not to purchase your Alison Certification, you can still demonstrate your achievement by sharing your Learner Record or Learner Achievement Verification, both of which are accessible from your Dashboard. For more details on our Certification pricing, please visit our Pricing Page.

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