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Accounts receivable is that portion of sales which are made on credit and money is agreed to be received in future that;s why accounts receivable is an asset of company and that's why not treated as a liability of company
It is fairly easy to "cook the books" by recording sales revenue offset by increasing Accounts Receivable. Eventually this is found out when the "customers" never pay their amounts "receivable".
Accounts receivables would be included in the balance sheet. The income statement reports revenues and expenses. Accounts receivables is an asset account and all the asset, liablities and equity accounts are reported on the balance sheet.
Sales is a revenue account and all revenues has credit balance as default balance so sales also has credit as default balance while cash or accounts receivable will be debited against it.
revenues, liabilities
Accounts receivable is that portion of sales which are made on credit and money is agreed to be received in future that;s why accounts receivable is an asset of company and that's why not treated as a liability of company
It is fairly easy to "cook the books" by recording sales revenue offset by increasing Accounts Receivable. Eventually this is found out when the "customers" never pay their amounts "receivable".
yes
Accounts receivables are on the balance sheet. They are an asset of the firm, that is they represent a future economic benefit. The income statement holds the revenues and expenses of the business.
Accounts receivables would be included in the balance sheet. The income statement reports revenues and expenses. Accounts receivables is an asset account and all the asset, liablities and equity accounts are reported on the balance sheet.
The net income for this company can be calculated by subtracting the total expenses from the total revenues. In this case, the net income would be 200,000 - 190,000 = 10,000.
Sales is a revenue account and all revenues has credit balance as default balance so sales also has credit as default balance while cash or accounts receivable will be debited against it.
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.
yes
Some assets will become costs in a future period such as Inventory and Prepaid Expenses. Fixed Assets will be depreciated in future periods. However, assets such as Cash and Accounts Receivable do not represent future expenses.
Assuming that the services have already been performed (i.e., the revenue has been EARNED), the entry for the invoice/income would be: DR Accounts receivable 1800.00 CR Revenues from services 1800.00
revenues, liabilities