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What is time to maturity?
Time to maturity is the amount of time left before an investment instrument can be exchanged for cash. If the instrument is withdrawn before maturity, there is will fines.
Why are increase in accounts receivable a cash reduction on the flow statement?
Increase in accounts receivable causes the reduction in cash because if sales are made on cash then there is no increase in accounts receivable and company receives cash which causes the increase in cash while accounts receivable not.
Receivables are usually listed on the balance sheet after Cash in what order?
Cash, Notes Receivable, Accounts Receivable, Interest Receivable.
What is trade receivable?
The term trade receivable refers to the amounts due to a business following the sale of goods or services to another company. It is a subcategory of Accounts Receivable. Trade receivables are considered a current asset on a company's balance sheet, as they can be readily converted into cash.
What are quick assets?
Assets that can be converted to cash quickly. Short term treasuries, accounts receivable, inventories can all be considered quick assets.
Is accounts receivable the least liquid or inventory?
No, cash + cash equivalents is the most liquid account. Liquidity is how quickly an asset can be converted to cash.
What is time to maturity?
Time to maturity is the amount of time left before an investment instrument can be exchanged for cash. If the instrument is withdrawn before maturity, there is will fines.
Why are increase in accounts receivable a cash reduction on the flow statement?
Increase in accounts receivable causes the reduction in cash because if sales are made on cash then there is no increase in accounts receivable and company receives cash which causes the increase in cash while accounts receivable not.
Receivables are usually listed on the balance sheet after Cash in what order?
Cash, Notes Receivable, Accounts Receivable, Interest Receivable.
What is trade receivable?
The term trade receivable refers to the amounts due to a business following the sale of goods or services to another company. It is a subcategory of Accounts Receivable. Trade receivables are considered a current asset on a company's balance sheet, as they can be readily converted into cash.
What are quick assets?
Assets that can be converted to cash quickly. Short term treasuries, accounts receivable, inventories can all be considered quick assets.
Why is GST receivable an asset?
An asset is something that will lead to future economic benefits or cash flows to the company. Accounts receivable means money that is receivable by the company from for example credit sales in which case the company has sold goods but has not received payment for those goods yet, but will receive cash for those goods at a later time. Since accounts receivable will eventually be converted into cash when payment is made at a future date, it is an asset
Do Credits post before debits?
No, always list Debits first. If you receive cash for example from a customer for an account receivable the entry should look like this: Cash (debit) XXXX Account Receivable (credit) XXXX
Accounts receivable is decreased with a?
Accounts receivable is decreased with credit balance or by receiving the cash from customers.
What do I need to know about the order to cash cycle before i attend an interview for an accounts receivable position?
yep :)
What is the journal entry for dividends receivable?
Dividend receivable Debit Cash dividend Credit Cash Debit Dividend receivable Credit
Does an increase in accounts receivable create a cash outflow?
Yes increase in accounts receivable creates cash outflow or reduction in cash as if instead of credit sales it would be cash sales then there would be cash received which increases the cash.
