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Accounts Receivable
Accounts receivable represents the money owed by clients to an establishment for the sale of products and services, which must be paid within an agreed timeframe. It is commonly executed by generating an invoice and delivering it to the customer.
2,500 Questions
Why owner's equity is affected by the choice of particular asset and liability measurement?
Cleopatra
Do decrease in accounts receiveable decrease sales?
Generally, those two accounts tend to move in the same direction. It is typically driven by Sales, though.
If Sales in a year increase, it would be expected that Accounts Receivable (A/R) would increase as well because typically a proportion of Sales are paid in cash, while another proportion is charged to credit.
If a company's Sales are generally made up by 1/2 cash and 1/2 credit, if Sales increased substantially in the year, we would expect A/R to increase as well.
If, however, Sales in the year plummeted, we would also expect A/R to decrease from the previous year.
(This is also assuming the company has not changed its policies regarding how it extends credit to customers, and is collecting its receivables in a timely manner.)
a withdrawl
Would you capitalize accounts payable administrator?
If you are talking about a particular person who has that exact title, then it is correct to capitalize Accounts Payable Administrator.
What is the difference between total current assets and total current liabilities is?
the difference between total current assets and total liability is the working capital. It goes with a formula 'current asset -current liability =working capital '
Is service performed a credit or debit in accounting?
Depend on who perform the services. 1.if it is do by the business is debt becos he will be paid 4 it and money comes. 2.credit if the pays other person 4 the service
Cash is neither considered Debit or Credit. There are three basic categories of accounts, accounts will fall under (generally) either Assets, Liabilities, or Owners Equity (aka Stockholders Equity).
The term Debit and Credit, literally translated mean, Debit = Left side:Credit = Right side, in double entry accounting.
Assets will increase with a debit and decrease with a credit.
Liabilities and Owners Equity will increase with a credit and decrease with a debit.
If you "receive" cash, you debit the cash account. If you "pay out" cash, you credit the cash account.
How do you prepare an accounts receivable aging report?
in tally or SAP separate T.code availble for aging please you can check and try
What does in mean when long term liabilities is less than current liabilities?
It means that the business is conducted out of short term cash. Hence small changes in the environment can affect the cash flow.
Is revaluation account a real account or nominal account?
When a company (or any legal entity) is of the opinion that the value of an asset has appreciated (or) depreciated much than the recorded historical value, revaluation of asset is undertaken. This necessitates us to create an account known as "revaluation A/c". It is understood that, the outcome of revaluation may be a gain (or) loss. As per Golden rule of Accounting, revaluation a/c is a nominal a/c since the a/c measures the gain (or) loss of the asset.
Yes, yet no. Yes in the fact that the full $900 would be recorded into the AR. However, since AR accounts are "assets" and maintain a debit balance, then a credit for the $900 will apply, not a debit.
The fact that the company is paying their account "after" the discount period means that they are not taking advantage of the discount and are paying the net amount, all $900, the company will record the receipt of the full $900 as a normal transaction.
Do you use net receivable in calculating AR turnover?
The equation for AR Turnover is:
AR Turnover = Net Credit Sales / Average AR
(/=divided by)
Some companies' will report only sales, however this can affect the ratio depending on the amount of cash sales.
Are accounts payable accounts that you expect will be paid to you?
are accounts payable accounts that expect will be paid to u
Where is the accounts receivables located on the balance sheet?
Accounts receivable is located on the left side of the balance sheet under the current assets.
Is trade in allowance a liability or a current asset?
trade in allowance is considered as acurent asset.
it can be explianed and understood with help of following example .
a firm has exchange a used ( 2nd hand ) machine for a new one. the worth of new machine has 20000. while the book value of old machine was 10000 but it was traded for worth of 12000, so it saved two 2000 cash , which is an asset.
New machine 20000(Dr)
Old machine 10000(Cr)
Trade in allowance 2000(Cr)
cash 8000(Cr)
