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Account Name? version 3

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    Account Name? version 3

    I'm really at a loss here. I used to be able to rattle off this stuff with no problem. I've since gotten away from the bigger corp returns.

    Anyhow what do they call 'trade accounts' on the balance sheet? I guess they call them just that, "trade accounts."

    Or "exchange account?"


    You know when the officer buys something for an associate and then gets reimbursed. Or some kind of business of sorts that's not really income.

    Anyhow, thanks in advance.

    #2
    At various times and under various circumstances I've used "Due to/from Officer", "Exchange Account", or "Suspense Account" to park these types of transactions. I usually classify them as liability accounts just so there's some attention called to them and to keep them from messing up the P&L accounts. I really prefer "Suspense Account" because the name has a temporary flavor to it and is more likely to keep the client alerted to the fact that something else needs to be done with the entry.

    About the only transition account I'll put on the P&L side is an account entitled "Accountant Review", and I make sure it sticks out like a sore thumb.
    "The only function of economic forecasting is to make astrology look respectful" - John Kenneth Galbraith

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      #3
      I

      Originally posted by JohnH View Post
      ...I really prefer "Suspense Account"...
      vote for this.

      Harlan?

      Maribeth?

      Comment


        #4
        Originally posted by Black Bart View Post
        vote for this.

        Harlan?

        Maribeth?

        I use the Cash Suspense method. Set the account up as one of the first accounts in the asset section. In theory, that account at the end of the period should be zero.

        I try to never, ever put a suspense account or "unidentified checks" or "ask your accoutant" as an expense account. Too easy to get buried and lost and not addressed.

        Maribeth

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