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many transactions affect more than one time period

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11y ago

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What accounts would most likely not need to be adjusted at the end of the year?

Accounts that typically would not need to be adjusted at the end of the year include cash accounts, as they reflect actual cash on hand, and prepaid expenses that have been fully utilized during the period. Additionally, fixed assets and their accumulated depreciation may also not require adjustments if there have been no changes in their value or usage. Finally, liabilities that have been settled or paid off do not require adjustments.


Why do businesses prepare control accounts?

don't know and what control of accounts do you need in a business


A credit memo is a document that is used for an increase in AR or not?

A credit memo is typically used to decrease accounts receivable (AR) by reducing the amount owed by a customer, often due to returns, discounts, or billing errors. It serves as a formal acknowledgment that a portion of the customer's debt has been forgiven or adjusted. Therefore, it does not increase AR; instead, it decreases it by reflecting a reduction in the amount that customers need to pay.


Should Accounts be capitalized in accounts payable?

Accounts Payable should be capitalized if using the phrase as a proper noun. If not then it does not need to be capitalized.


Why are accounts receivables and accounts payable called trade receivables?

Because we can use its to make opportunity for business. For decision financing is very importance cause we can analyzing about company's situation and will need this information to make strategy in the future.

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