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An account payable is a debt the company owes and maintains a credit balance, the impact on the account if a company pays the debt is a decrease in what the company owes or a decrease in the account payable. This means a debit will be added to the account to "decrease" the balance.
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Does an increase in accounts payable on the satatement a positive effect on the cash flow?
Increase in accounts payable will increase the cash inflow because if the cash is paid instead of credit purchases company has to pay cash which reduces the cash but as purchases has made on credit and no cash has to be paid that's why it has positive impact on cash flow.
What has no effect on retained earnings?
A transaction that only affects asset and/or liability accounts would have no impact on Retained Earnings. Such as paying an Accounts Payable invoice or receiving payment of an Accounts Receivable.
Jekyll Company collected 500 on account What impact will this transaction have on the firm's current ratio?
no impact
In the buyers records the purchase of merchandise on account would it increase or decrease assets expenses liabilities?
Anything bought on account will have an impact on two sides of the accounting equation. Since we "purchased" the merchandise we are receiving, therefore we will Increase our assets (merchandise), since we purchased this item on "account" we will also increase our liabilities (account payable).
How is your credit score affected if a credit card company closes your account because of inactivity?
Your credit score is affected by ALL the information in your credit history. Specifically, a recently closed, inactive, revolving account would impact the amount of credit available to you, thus changing your debt-to-available-credit ratio. If this particular acccount was the oldest account in your file, closing it would also shorten the history of your open credit accounts. The amount of impact to your current score would depend upon what remained open in your file and, once again, ALL the data showing, not just this one account.
Does an increase in accounts payable on the satatement a positive effect on the cash flow?
Increase in accounts payable will increase the cash inflow because if the cash is paid instead of credit purchases company has to pay cash which reduces the cash but as purchases has made on credit and no cash has to be paid that's why it has positive impact on cash flow.
What has no effect on retained earnings?
A transaction that only affects asset and/or liability accounts would have no impact on Retained Earnings. Such as paying an Accounts Payable invoice or receiving payment of an Accounts Receivable.
Is an increase in accounts payable an libality?
Yes Accounts Payable is your Short term liability it is payment that you need to pay within short time. It is basically associated with purchase of raw material , some salary due , payment of such bills etc. This will impact on your creditability and computation of working capital limit.
Jekyll Company collected 500 on account What impact will this transaction have on the firm's current ratio?
no impact
Will the LIFO and FIFO approaches to pricing accounts payable impact the reportable income of a company?
Yes, During periods of significantly increasing costs, LIFO when compared to FIFO will cause a higher cost of goods sold on the income statement. Which means a lower net income.
In the buyers records the purchase of merchandise on account would it increase or decrease assets expenses liabilities?
Anything bought on account will have an impact on two sides of the accounting equation. Since we "purchased" the merchandise we are receiving, therefore we will Increase our assets (merchandise), since we purchased this item on "account" we will also increase our liabilities (account payable).
How is your credit score affected if a credit card company closes your account because of inactivity?
Your credit score is affected by ALL the information in your credit history. Specifically, a recently closed, inactive, revolving account would impact the amount of credit available to you, thus changing your debt-to-available-credit ratio. If this particular acccount was the oldest account in your file, closing it would also shorten the history of your open credit accounts. The amount of impact to your current score would depend upon what remained open in your file and, once again, ALL the data showing, not just this one account.
What is the impact of missing journal entries from a companies financial statement?
It depends on the journal entry and what accounts it would have affected. If it was just a reclassification of say, from one expense account to another, no affect. On the other hand if it were to affect two different classes of accounts, say, an asset and an expense account you could mis-state the balance sheet or income statement or both.
What impact does savings accounts have on individuals money?
Savings account are made for saving/investing and therefore gain interest. The longer you have more money in them, the more you make on interest. So, the impact savings accounts have on an individual's money is that it increases the amount as long as minimum balance requirements are met and money is kept in the account.
If a firm has 100 million in revenues Does that mean it has generated a cash flow of 100 million?
Not necessarily. Revenues represent the total income generated by a firm from its business activities. However, cash flow refers to the actual cash received or paid out by the firm during a specific period. Factors such as expenses, investments, and accounts receivable or payable can impact the actual cash flow generated by the firm.
Jmd impact group is this government undertaking Company?
Not undertaken company
What is the impact of low profit margin on a company?
Means no expansion or further investment for the company because no cash is there, one more impact is the reputation of the company which could lead to decrease of the share price
