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Because few going concerns are paid the moment someone buys their product. The customers are billed at certain times during the month and if paid the amount in A/R will go down and cash will go up. The purchase is reflected on the customers balance sheet as an Account Payable which will go down when the supplier is paid. They no longer owe money for their purchase. Their cash account will go down as well because they had to take the money out to pay the supplier.
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∙ 13y ago
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Are accounts receivables an asset?
Yes, all Account Receivables are counted as Assets.
What do account receivables do?
Receive accounts.
Notes or accounts receivables that result from sales transactions are often called?
Trade receivables
Are accounts receivable liquid assets?
Accounts receivables is a liquid asset
What are the three accounting issues associated with accounts receivables?
Associated accounting issues include recognizing accounts receivable, valuing accounts receivable, and disposing of accounts receivable.
Where does accounts receivables go on an income statement?
Account receivables only appear on Balance Sheet.
What are accounts recievables?
Accounts receivables relates to credit customers (debtors). Although somebody in the accounts receivables department will probably deal with anything relating to sales through to debt collection.
Is accounts receivables considered an asset?
Yes. Accounts receivable, or receivables for short, represent a financial obligation to the organization and are represented on the asset side of the balance sheet.
What is the meaning of pledged receivables?
Pledged accounts receivable, also known as accounts receivable financing, is a type of secured short-term loan whereby the debt is recorded in the financial institution's accounts receivables account.
An acceleration in the collection of receivables will do what to the accounts receivable turnover?
increase
What are the key areas in accounts receivables?
Identify and explain the key areas of accounts receivable management.
Notes receivable and accounts receivables can also be called trade receivables is this statement true or false?
true but i don't know why?
