answersLogoWhite

0

How sales decrease?

Updated: 9/23/2023
User Avatar

Wiki User

10y ago

Want this question answered?

Be notified when an answer is posted

Add your answer:

Earn +20 pts
Q: How sales decrease?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Continue Learning about Accounting

When fixed costs decrease what does this do for sales?

When fixed costs decrease sales also decrease. The formula for sales is sales = variable costs + fixed cost + net income 30 = 10 + 10 + 10 28 = 10 + 8 + 10


Do variable costs per unit decrease when sales increase?

Variable cost per unit remains same per unit and has no impact on increase or decrease of sales.


What records a decrease in an asset?

A sales refund will reduce income (debit to Sales Returns) and assets (credit to cash).A debit to Depreciation Expense and a credit to Accumulated Depreciation will reduce assets and net income.It means that some transaction decreases assets and liabilities at the same time. For example, payment of accounts payable results in a decrease in cash and a decrease in accounts payable.


If an adjusting entry is not made for an accrued revenue what will be overstated?

accrued revenue is acc. receivable control, which is an asset. if it is not made, the assets will decrease. Eq=A-L, A drop, and then Eq will decrease. accrued revenue can be category of sales revenue too, so if sales drop, P=I-Ex, P will decrease the only thing will increase is L and Ex when comparing with A P or I.


Do decrease in accounts receiveable decrease sales?

Generally, those two accounts tend to move in the same direction. It is typically driven by Sales, though. If Sales in a year increase, it would be expected that Accounts Receivable (A/R) would increase as well because typically a proportion of Sales are paid in cash, while another proportion is charged to credit. If a company's Sales are generally made up by 1/2 cash and 1/2 credit, if Sales increased substantially in the year, we would expect A/R to increase as well. If, however, Sales in the year plummeted, we would also expect A/R to decrease from the previous year. (This is also assuming the company has not changed its policies regarding how it extends credit to customers, and is collecting its receivables in a timely manner.)

Related questions

What happens to sales when fixed costs decrease?

When fixed costs decrease, what does this do for sales?


Sales decrease 70 to 63 what is the sales percent?

The decrease in sales is 7 based on 70. The percentage decrease is 100 x 7/70 = 10%


When fixed costs decrease what does this do for sales?

When fixed costs decrease sales also decrease. The formula for sales is sales = variable costs + fixed cost + net income 30 = 10 + 10 + 10 28 = 10 + 8 + 10


How does Sales growth decrease the value of a profitable company?

Explain how it's possible for sales growth to decrease the value of a profitable company.


Do variable costs per unit decrease when sales increase?

Variable cost per unit remains same per unit and has no impact on increase or decrease of sales.


How does competitiors low prices affect your sales?

Obviously it will decrease your sales if their prices are below yours.


What is the effcect of cost of sales on gross profit?

Cost of sales influances the gross profit to decrease or increase as following formula: Gross profit = Sales - Cost of sales


Sales decrease 35 to 28 what is the sales percent?

Reduction is seven thirty-fifths which is one-fifth ie 20%


What will a decrease a revenue and a decrease in assets?

A sales refund will reduce income (debit to Sales Returns) and assets (credit to cash). A debit to Depreciation Expense and a credit to Accumulated Depreciation will reduce assets and net income.


What causes a decrease in cash flow?

Many things can cause a decrease in cash flow including decrease in sales, increase in expenses, not collecting accounts receivables timely, and increase in interest rates.


What are the Saab sales figures for 2009?

There are 8,450 vehicles sold by Saab in 2009. A very big decrease in sales from last year's sales figures which were about 20,000 vehicles sold in 2008.


Are the sales decreasing in Renault?

"Renault's financial results for the first half of 2011 indicates that their sales are up by 1.9%. In the past, there has been a decrease; however, the current statistics show an increase in sales."