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Can revenues from credit sales be recorded before they are collected in cash?
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What is one way in which accrual accounting can be used in earnings management?
Revenues are recorded when the sale transaction is complete, not when the customer makes payment, but management must then estimate what proportion of those credit sales will not be collected in the future.
Revenues from credit sales may be earned before they are collected in cash do you agree?
Yes, if the product or service is rendered to the customer and said customer has not paid the amount, the revenue has been earned, not collected, to record this transaction you would Debit Accounts Receivable (to show that the service or product has been rendered) and Credit Revenue (income). Once payment is received, then to show money has been collected, you Debit Cash and Credit Accounts Receivable (you no longer have to touch your sales/revenue account as the amount is already listed as being earned).
What were revenues for CSC Credit Services in 1983?
In 1983 CSC Credit Services had revenues of $22 million. By the time Honeycutt left the division in 1987, revenues had increased to $105 million, and CSC Credit Services was the largest Computer Sciences commercial operation.
Do revenues have a credit or debit balances?
Revenue is an Owners Equity account therefore has a Credit Balance:
What is an accrual in accounting?
Generally, an accrual is either: 1. An expense you have incurred but have not yet paid. 2. A revenue you have earned but have not yet collected. Accruals are determined at the end of every accounting period (month end). You accrue expenses (Debit Expenses and Credit Payables). You accrue revenues (Debit Accounts Receivable and Credit Revenues) There is an excellent brief tutorial on accruals included with the ACCULATOR. The ACCULATOR (www.acculator.com) helps you solve your accounting homework problems.
What is one way in which accrual accounting can be used in earnings management?
Revenues are recorded when the sale transaction is complete, not when the customer makes payment, but management must then estimate what proportion of those credit sales will not be collected in the future.
Revenues from credit sales may be earned before they are collected in cash do you agree?
Yes, if the product or service is rendered to the customer and said customer has not paid the amount, the revenue has been earned, not collected, to record this transaction you would Debit Accounts Receivable (to show that the service or product has been rendered) and Credit Revenue (income). Once payment is received, then to show money has been collected, you Debit Cash and Credit Accounts Receivable (you no longer have to touch your sales/revenue account as the amount is already listed as being earned).
What were revenues for CSC Credit Services in 1983?
In 1983 CSC Credit Services had revenues of $22 million. By the time Honeycutt left the division in 1987, revenues had increased to $105 million, and CSC Credit Services was the largest Computer Sciences commercial operation.
Do revenues have a credit or debit balances?
Revenue is an Owners Equity account therefore has a Credit Balance:
What is an accrual account?
Generally, an accrual is either: 1. An expense you have incurred but have not yet paid. 2. A revenue you have earned but have not yet collected. Accruals are determined at the end of every accounting period (month end). You accrue expenses (Debit Expenses and Credit Payables). You accrue revenues (Debit Accounts Receivable and Credit Revenues) There is an excellent brief tutorial on accruals included with the ACCULATOR. The ACCULATOR (www.acculator.com) helps you solve your accounting homework problems.
What is an accrual in accounting?
Generally, an accrual is either: 1. An expense you have incurred but have not yet paid. 2. A revenue you have earned but have not yet collected. Accruals are determined at the end of every accounting period (month end). You accrue expenses (Debit Expenses and Credit Payables). You accrue revenues (Debit Accounts Receivable and Credit Revenues) There is an excellent brief tutorial on accruals included with the ACCULATOR. The ACCULATOR (www.acculator.com) helps you solve your accounting homework problems.
Is interest earned a debit or credit?
All earnings and revenues has credit balance as normal balance so interest earned also has credit balance as default normal balance.
When is CGS recorded at credit side?
when the goods are sold , then the cost of goods sold is recorded at the credit side of the purchase ledger
is revenue debit and expense credit?
No all revenues has credit balance as default balance while all expenses has debit balance as default normal balance.
What balances have debit or credit balances?
Assets, Expenses and Losses have native debit balances. Liabilities, Stockholders' equity, Revenues, and Gains have native credit balances.
What balances have debit or credit balance?
Assets, Expenses and Losses have native debit balances. Liabilities, Stockholders' equity, Revenues, and Gains have native credit balances.
What is the purchase of equipment on credit recorded by?
A debit to equipment and a credit to liability
