doubtful debts provision

简明释义

预提坏帐准备

英英释义

例句

1.The doubtful debts provision was increased this quarter after several clients failed to pay on time.

由于几位客户未能按时付款，本季度的坏账准备有所增加。

2.To ensure accurate financial reporting, the firm regularly reviews its doubtful debts provision.

为了确保财务报告的准确性，该公司定期审查其坏账准备。

3.Investors often look at a company's doubtful debts provision to assess its financial health.

投资者通常会查看公司的坏账准备以评估其财务状况。

4.The accountant adjusted the financial statements to include a doubtful debts provision for the overdue invoices.

会计师调整了财务报表，以包括一项坏账准备，以应对逾期发票。

5.In the annual report, the company disclosed a significant doubtful debts provision due to increased credit risk.

在年度报告中，公司披露了一项重大坏账准备，这是由于信用风险增加所致。

作文

In the world of finance and accounting, businesses often face the challenge of managing their receivables. One important concept that arises in this context is the doubtful debts provision, which refers to the amount set aside by a company to cover potential losses from accounts receivable that are unlikely to be collected. This provision is crucial for accurately reflecting a company's financial health and ensuring that its balance sheet presents a realistic picture of its assets.The doubtful debts provision serves as a safeguard against the uncertainty associated with credit sales. When companies extend credit to customers, they take on the risk that some of these customers may default on their payments. To mitigate this risk, businesses estimate the portion of their receivables that may not be collectible and create a provision in their financial statements. This estimation process usually involves analyzing historical data, current economic conditions, and the financial stability of customers.For instance, if a company has $100,000 in accounts receivable and estimates that 5% of those debts may become uncollectible, it would record a doubtful debts provision of $5,000. This provision is recorded as an expense on the income statement, reducing the company's net income for that period. Simultaneously, it creates a contra asset account on the balance sheet, which offsets the total accounts receivable, thereby presenting a more accurate figure of what the company can realistically expect to collect.The importance of the doubtful debts provision cannot be overstated. It helps businesses maintain transparency with stakeholders, including investors and creditors, by providing a clearer view of the company's financial position. Furthermore, it enables management to make informed decisions regarding credit policies and customer relationships. By regularly reviewing and adjusting the provision based on actual collection rates and changing economic conditions, companies can better manage their cash flow and prepare for potential financial challenges.In addition to its financial implications, the doubtful debts provision also has a significant impact on a company's overall strategy. For example, if a business notices an increase in its provision for doubtful debts over time, it may indicate that its credit policies need to be tightened or that it should focus on improving its collections process. This proactive approach can help prevent future losses and ensure the long-term sustainability of the business.Moreover, investors and analysts pay close attention to the doubtful debts provision when evaluating a company's performance. A consistently high provision relative to total receivables may raise red flags about the company's credit risk management practices and could lead to a reassessment of its valuation. On the other hand, a well-managed provision that reflects realistic expectations can enhance investor confidence and contribute to a positive perception of the company's financial stability.In conclusion, the doubtful debts provision is a vital component of financial management that assists businesses in navigating the complexities of credit sales and receivables. By recognizing the potential risks associated with uncollectible debts and proactively setting aside funds to cover these losses, companies can protect their financial health and maintain trust with their stakeholders. Understanding and effectively managing this provision is essential for any business aiming for long-term success in today's competitive market.

在金融和会计的世界中，企业常常面临管理应收账款的挑战。在这个背景下，一个重要的概念就是坏账准备，它是指公司为可能无法收回的应收账款设立的金额。这项准备对于准确反映公司的财务状况至关重要，并确保其资产负债表呈现出真实的资产状况。坏账准备作为对信用销售相关不确定性的保护措施。当公司向客户提供信用时，他们承担了部分客户可能违约的风险。为了降低这种风险，企业会估算出可能无法收回的应收账款比例，并在财务报表中创建相应的准备。这一估算过程通常涉及分析历史数据、当前经济状况以及客户的财务稳定性。例如，如果一家公司有10万美元的应收账款，并估计其中5%的债务可能变得不可收回，则它将记录一个坏账准备为5000美元。这个准备在损益表上被记录为费用，从而减少该期间公司的净收入。同时，它在资产负债表上创建一个对冲资产账户，以抵消总应收账款，从而更准确地呈现公司实际可收回的金额。坏账准备的重要性不容小觑。它帮助企业与利益相关者（包括投资者和债权人）保持透明，通过提供公司财务状况的更清晰视图。此外，它使管理层能够就信用政策和客户关系做出明智的决策。通过定期审查和调整准备金，以基于实际收款率和变化的经济条件，公司可以更好地管理现金流并为潜在的财务挑战做好准备。除了财务影响外，坏账准备还对公司的整体战略产生重大影响。例如，如果一家企业注意到其坏账准备随着时间的推移而增加，这可能表明其信用政策需要收紧或应专注于改善收款流程。这种主动的方法可以帮助防止未来的损失，并确保企业的长期可持续发展。此外，投资者和分析师在评估公司的表现时也非常关注坏账准备。相对于总应收账款，持续较高的准备金可能会引发对公司信用风险管理实践的警示，并可能导致其估值的重新评估。另一方面，管理良好的准备金能够反映出现实的预期，可以增强投资者的信心，并有助于公司财务稳定性的积极看法。总之，坏账准备是财务管理的一个重要组成部分，帮助企业应对信用销售和应收账款的复杂性。通过认识到与不可收回债务相关的潜在风险，并主动设立资金以覆盖这些损失，公司可以保护其财务健康，并与利益相关者保持信任。理解和有效管理这一准备金对于任何希望在当今竞争市场中取得长期成功的企业来说都是必不可少的。