you use the word "clearly" in your post. if it's clear what they were doing then that's less troubling.... not exactly

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Oct 11, 2017
12:46:28pm

HarlemCoug Playmaker

you use the word "clearly" in your post. if it's clear what they were doing then that's less troubling.... not exactly

sure how they made it clear to you... but the fact that it's clear is a noteworthy datapoint.

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HarlemCoug

Previous username: Big12
Bio page: HarlemCoug
Joined: Sep 8, 2014
Last login: Oct 31, 2024
Total posts: 35,221 (4,428 FO)

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Time

Accounting question on a loan. A small business gives a $100K loan to a customer

Bro

10/11/17 12:18pm

It won't show up on the balance sheet or income statement unless

Huge Manatee

10/11/17 12:21pm

All transactions happened within the same month?

BlackBart

10/11/17 12:22pm

There are actually several loans and they are typically paid back within several

Bro

10/11/17 12:23pm

Any loans crossing over at a month-end should be on the balance sheet

BlackBart

10/11/17 12:32pm

Assuming the loan is paid back after month end, shouldn't it be shown as an

Bro

10/11/17 12:31pm

are you saying that the company continues to book it as income on the income statement even after the payoff and has an

HarlemCoug

10/11/17 12:24pm

Yes, I am concerned they are overstating their revenues. It looks like they book

Bro

10/11/17 12:28pm

Ask to have their operating accounts' bank statements. Compare revenue/cogs

BlackBart

10/11/17 12:35pm

RE: Yes, I am concerned they are overstating their revenues. It looks like they

Twturner5

10/11/17 12:35pm

I'm no CPA, but...

WaHooWaCoug

10/11/17 12:37pm

I think it will be difficult to find an accountant who thinks this is revenue. Because the revenues and COGS don't match

HarlemCoug

10/11/17 12:38pm

Thanks. I won't name names, but they used a CPA based in SLC for 2016 taxes.

Bro

10/11/17 12:44pm

you use the word "clearly" in your post. if it's clear what they were doing then that's less troubling.... not exactly

HarlemCoug

10/11/17 12:46pm

It's a balance sheet transaction only. No part of it should ever hit the P&L

BYU-Ite

10/11/17 12:31pm

RE: It's a balance sheet transaction only. No part of it should ever hit the

Twturner5

10/11/17 12:37pm

Thank you! This is the answer I was hoping for and I hope this is actually the

Bro

10/11/17 12:37pm

Ask for their billing register in Excel. In most outputs, you should be able to

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