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An increase in accounts receivable is subtracted or added to what?

This depends on what caused the increase. Accounts receivable is the account used when a person or company owes YOU money. With an increase in AR, that means you either performed a service or sold goods to a person or company on account. Since this is an "increase" you will (ADD) the amount to your Account Receivable and Income (or Revenue).


Why funds flow statement prepared?

A funds flow statement compares a company's actual cash flow with its predicted cash flow. This allows a company to examine the factors that may have caused a failure to meet goals.


If the retained earnings account decrease from the beginning of the year to the end of the year what will happen next?

Typically, this is a result of either payment of dividends or an overall loss for the year. So it can be a good thing or a bad thing. It comes down to what type of entity you are talking about. For a fortune 500 concern that is successful, you'll usually attribute that to dividends. However, with smaller companies, usually privately held, it will largely come down to a loss or an increase in shareholder distributions.As far as what happens next, there is usually a cycle that is hard to stop. Either the company lowers its dividend, which investors do not like, or it must regain profitability/decrease distributions to owners.If the smaller company is going through transition, this can rebound. You may want to look at cash flow in this situation. If they are rebounding and have positive operating cash flows, no worries. If not, expect more of the same. Also, our current economy has caused a dramatic effect on this number as well. Remember, most things wash out through retained earnings, so it can be a number of things based on the entity and it's market. Try to trace the decrease back to other accounts that may have decreased throughout the year. Possibly sales, distributions (an increase in), a large capacity increase, etc. If assets or liabilities increase, RE will decrease, so start with the big numbers on the balance sheet and go from there. Hope this helps.


What causes high taxes?

High taxes can be caused by a variety of factors, including government spending needs, economic conditions, and public policy decisions. When governments require more revenue to fund public services, infrastructure, and social programs, they may raise taxes. Economic downturns can also lead to higher taxes as governments seek to compensate for reduced tax revenues. Additionally, tax policies aimed at addressing income inequality or funding specific initiatives can contribute to higher overall tax rates.


Describe the problem caused to a company if a major customer refuses to pay a big bill?

This will have a negative effect on the firm's cash flow position.The firm may have to spend time and money demanding payment.If they still don't pay up, the firm may need to take legal action (another large expense) - note that this would be done only if it was a very large bill, otherwise it would not be worth it.

Related Questions

An increase in accounts receivable is subtracted or added to what?

This depends on what caused the increase. Accounts receivable is the account used when a person or company owes YOU money. With an increase in AR, that means you either performed a service or sold goods to a person or company on account. Since this is an "increase" you will (ADD) the amount to your Account Receivable and Income (or Revenue).


An increase in quantity supplied can be caused by?

increase in price


What two events caused the English debt to increase?

Name two events that caused the English debt to increase?


How has increase in population caused vehicular pollution?

Increase in population = increase in demand for vehicles = increase in vehicles = increase in vehicular pollution


Which of these changes caused an increase in pollution during the Industrial Revolution?

(Apex) Increase in urbanization.


What are the diseases caused due to the increase of WBC?

polycytemia


What caused your heart rate to increase and decrease?

fudge


If you hit your own garage door will insurance pay?

Yes, your insurance company will pay for your accident if you caused it, but your insurance will increase. You may want to weigh the cost of covering it yourself and filing it on your insurance.


why were the financial controllers of France dismissed?

According to him, they were false and misleading, as the state revenues had been revised upwards. For Calonne the French deficit was caused by Necker, who had not raised the taxes. However, Calonne got involved in several financial scandals regarding the "Calonne Company" and was dismissed by the king on 8 April 1787


What caused Ireland's great famine?

Ireland's Famine was caused mainly by Blight and a sudden increase in Population


The 1957 launching of sputnik caused congress to what?

it caused congress to increase spending on teaching science and mathematics


What could potentially increase the size of a population?

the gold rush caused a rapid increase in the population after 1851.