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Question about accounts receivable and inventory?
account receivable and inventory
What is a liquidity order?
ORDER OF LIQUIDITY is when items on a balance sheet are listed in order of liquidity. After cash, the other current assets are listed in order of liquidity or nearness to cash (i.e. Accounts Receivable first, then Inventory).
When merchandise is returned under the perpetual inventory system the buyer would credit a. Accounts Payable b. Merchandise Inventory c. Purchases Returns and Allowances...?
The Buyer would likely perform the following transaction: DR- Account Receivable CR - Merchandise Inventory The Buyer would probably debit CASH if they receive CASH from the Seller instead of having to WAIT on it. The Merchandise Seller would perform the following transaction: DR - Merchandise Inventory CR - Accounts Payable, OR CASH
What would be a temporary account A inventory b sales c accounts payable d accounts receivable?
a. inventory
What does the acid test ratio not include cash or accounts receivable or supplies or inventory?
inventory
Question about accounts receivable and inventory?
account receivable and inventory
What is a liquidity order?
ORDER OF LIQUIDITY is when items on a balance sheet are listed in order of liquidity. After cash, the other current assets are listed in order of liquidity or nearness to cash (i.e. Accounts Receivable first, then Inventory).
Is accounts receivable the least liquid or inventory?
No, cash + cash equivalents is the most liquid account. Liquidity is how quickly an asset can be converted to cash.
What do you understand by working capital?
indicates the liquidity levels of businesses for managing day-to-day expenses and covers inventory, cash, accounts payable, accounts receivable, and short-term debt
When merchandise is returned under the perpetual inventory system the buyer would credit a. Accounts Payable b. Merchandise Inventory c. Purchases Returns and Allowances...?
The Buyer would likely perform the following transaction: DR- Account Receivable CR - Merchandise Inventory The Buyer would probably debit CASH if they receive CASH from the Seller instead of having to WAIT on it. The Merchandise Seller would perform the following transaction: DR - Merchandise Inventory CR - Accounts Payable, OR CASH
What would be a temporary account A inventory b sales c accounts payable d accounts receivable?
a. inventory
What does the acid test ratio not include cash or accounts receivable or supplies or inventory?
inventory
What is primary work?
Accounts Receivable + Inventory - Accounts Payables. (excludes prepaid expenses and accrued liabilities)
What is primary capital?
Accounts Receivable + Inventory - Accounts Payables. (excludes prepaid expenses and accrued liabilities)
What is the Journal entry for a customer returning merchandise delivered in poor condition?
[Debit] Sales returns [Credit] Accounts receivable
How do you improve the cash operating cycle?
The cash operating cycle is a function of how quickly you pay your accounts payable, how quickly you sell your inventory, and how quickly you collect your sales (accounts receivable):Cash operating cycle = Average days' inventory + Average days' accounts receivable - Average days' accounts payable.To reduce the cash operating cycle:sell inventory more quickly,collect sales/accounts receivable more quickly orpay accounts payable more slowly.
What is primary working capital?
Accounts Receivable + Inventory - Accounts Payables. (excludes prepaid expenses and accrued liabilities)
