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What needs to happen in accounts receivables when a customer pays their account?
debit revenue and credit receibables
What is an adjusting entry?
journal entries recorded to update general ledger accounts at the end of a fiscal period. it is made to prevent or correct errors that may happen in the system. To see how to make an adjusting entry, visit: http://www.accounting7.com/content/exercise-adjusting-account-entries-accounting
What is over recognition of revenue?
Over recognition of revenue occurs when a company records more revenue than it has actually earned, often violating accounting principles. This can happen due to aggressive sales practices, premature recognition of revenue before services are rendered or goods are delivered, or manipulation of accounting estimates. Such practices can mislead stakeholders about a company's financial health, potentially leading to legal repercussions and loss of investor trust. Ultimately, it distorts the financial statements, making it difficult to assess the true performance of the business.
What accounting principle requires revenue to be reported when earned?
In GAAP there are two basic accounting principles. The first being Accrual (which is the most commonly used) and the second being Cash Basis.Neither stipulate that income has to be "earned" before it is reported. The difference in the two are:Accrual basis accounting transactions are reported as they happen.1. For example, a contractor gets paid to remodel a home, he's received the money for the job, but hasn't earned it, completed the work. Accrual account states that this transaction be recorded as a liability (unearned revenue) to the company until the revenue is earned.2. Say the opposite is true in accrual accounting, the contractor finished the remodeling but isn't expected to be paid for it until later in the future. The company records this transaction as an asset (account receivable).Now let's look at Cash Basis: Cash basis states that a transaction didn't actually happen until such time the money is received, period. Take example 1, a transaction in cash basis accounting is recorded because money was actually received, even though it hasn't been earned.Example number 2 however, would be no recording of the transaction, although the job was finished, no money exchanged hands as of yet.This is why many businesses use accrual accounting. Only small companies that generally deal in cash or small amounts tend to lean toward cash basis accounting and it is still not recognized as a very good method of accounting by the GAAP.
What will happen when the government collects more revenue than it spends?
When the government collects more revenue than it spends, it generates a budget surplus. This surplus can be used to pay down existing debt, invest in public projects, or save for future economic downturns. Additionally, a surplus can lead to lower interest rates and increased investor confidence, potentially stimulating economic growth. However, it can also raise questions about fiscal policy and the optimal use of excess funds.
What will happen if a video stores raises the price of a rental?
it will lose revenue
What will happen if a video store raises the price of a rental?
it will lose revenue
Profits will be maximized when marginal revenue?
Profits will be maximized when marginal revenue is equal to marginal costs. This will only happen in cases where there are fixed costs.
When did Capital Combat happen?
Capital Combat happened on 1990-05-19.
When did Great Capital Run happen?
Great Capital Run happened on 2008-07-20.
When did WWF Capital Carnage happen?
WWF Capital Carnage happened on 1998-12-06.
How do you compare recorded history with prehistory?
Recorded history is history that has already happened and prehistory is history that is about to happen.
What needs to happen when a customer pays their account in account receivables?
debit revenue and credit receibables
What needs to happen in accounts receivables when a customer pays their account?
debit revenue and credit receibables
What happen to Chevy chase bank?
It was bought by Capital One Financial Corporation and merged into Capital One, N.A. in 2009
What is the capital city of sydney?
Sydney is a city, it does not have its own internal capital. Sydney does happen to be the capital city of New South Wales.
Demand for movie rentals is highly elastic what will happen if a video store is the price for a rental?
b lose revenue
