貸倒引当金 (kashidaore hikiatekin) refers to a bad debt reserve or allowance for doubtful accounts. This is a financial provision that businesses set aside to cover potential losses from customers who may be unable to pay their debts.
In accounting, this allowance is created to reflect the realistic value of a company's receivables by accounting for the possibility of non-collection. It involves estimating the amount of receivables that are unlikely to be collected and recording this estimate as an expense, which reduces the net income. The corresponding allowance is recorded on the balance sheet as a contra asset account, reducing the total accounts receivable.
By maintaining a kashidaore hikiatekin, companies can better manage their financial health and ensure more accurate financial reporting.
See Also
In Japanese, the term 経費 (keihi) refers to "expenses" or "business expenses." These are the costs incurred in the process of running a business. Keihi can include a wide range of expenditures such as rent for office space, utilities like electricity, water, and internet, employee salaries and wages, office supplies, travel expenses, marketing and advertising costs, and depreciation of assets. Properly tracking and managing keihi is essential for maintaining accurate financial records, budgeting, and ensuring compliance with tax regulations. In Japan, businesses must be meticulous in documenting and categorizing their expenses to maximize tax deductions and maintain transparency with the tax authorities.
償却資産 (shoukyaku shisan) is a Japanese term that translates to "depreciable assets" or "amortizable assets" in English. It refers to tangible fixed assets that are subject to depreciation over time due to wear and tear, obsolescence, or usage.
Examples of 償却資産 include machinery, equipment, buildings, and vehicles. These assets are capitalized on a company's balance sheet and their cost is gradually expensed through depreciation over their useful life. This accounting practice helps in matching the cost of the asset with the revenue it generates, providing a more accurate picture of a company's financial performance.
供託 (kyoutaku) is a Japanese term that translates to "deposit" or "escrow" in English. It refers to the act of depositing money, securities, or other valuables with a government office or a designated entity to fulfill a legal obligation or to ensure the performance of a contract.
In Japan, 供託 is commonly used in various legal and financial contexts. For example, it can be used to settle disputes, provide security for a loan, or ensure the payment of rent or other obligations. The deposited assets are held in trust by the government office or entity until the conditions of the deposit are met or resolved. This system helps to protect the interests of all parties involved and ensures that legal and contractual obligations are fulfilled.
Frequently Asked Questions
貸倒引当金 (kashidaore hikiatekin) refers to a bad debt reserve or allowance for doubtful accounts. This is a financial provision that businesses set aside to cover potential losses from customers who may be unable to pay their debts.
A bad debt reserve or allowance for doubtful accounts is 貸倒引当金 (kashidaore hikiatekin) in Japanese.
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