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Does sales made on credit cause accounting profit and cash flow to differ?
Wiki User
∙ 9y ago
Yes, because due to sales on credit sales are accounted for when they are occurred while cash is received in some future time that;s why accounting profit and cash flows differ due to recognition timing difference.
Wiki User
∙ 9y ago
Wiki User
∙ 9y agoYes, because due to sales on credit sales are accounted for when they are occurred while cash is received in some future time that;s why accounting profit and cash flows differ due to recognition timing difference.
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A transaction that is likely to cause an increase in a current liability is?
The purchase of anything on CREDIT, as long as that account is to be paid off within 1 year (or one accounting period) A current liability is anything a company owes that is reasonably expected to be paid off within one year or one accounting period.
Can you use a bar chart to show percentages of money donated by various companies?
Maybe. XXXXPPPPPP - GenCorp donated 40% of its profit to cause XXPPPPPPPP - Microsoft donated 20% of its profit to cause XXXXXXXXPP - Zombie-Clean donated 80% of its profit to cause
Factors which can cause accounting ratios to be misleading when used for comparison?
1.Window Dressing2.Different accounting policies3.InflationSam.
How does the cause of cystic fibrosis differ from the cause of down syndrom?
the genetic conditions
How does the cause of cystic fibrosis differ from the cause of down syndrome?
the genetic conditions
How does the cause of down syndrome differ from the cause of cystic fibrosis?
the genetic conditions
What are the problems cause by accounting diversity?
Assist companies entering the Norwegian market The problem with the diversification of accounting by multinational companies is that this will lead to many companies not being able to find ways of appropriating the inflation rate as most will be using different methods.
How would shoplifting cause you to make no profit?
Because stealing can cause you to go to jail and have no life .
What if a balance sheet doesn't balance?
This can mean that either you got the maths wrong, or that the business has not accounted for one or more transactions. Ex: Company purchased $2,000 in equipment in cash. You Debit the equipment, but forget to Credit the cash balance. That incorrect transaction would cause the accounting equation to be incorrect. The accounting equation is... Assets = Liability + Owner Equity
How does a termite differ than an ant?
cause they bdo
Can a non-profit organization keep earnings?
No. The whole point of a non-profit organization is that it's non-profit. All of their earnings go to their cause and all of the workers in the organization are volunteers.
The differences between goal of a firm and profit maximization?
A goal of firm isn't always profit driven, it can be any cause. Profit maximization is revenue driven, making more money is it focus.
