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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
Debit - Discount received 200
Credit -customers account 200
Why is the percent of sales method known as the income statement method?
bacause its lower the sale price
What are the key areas in accounts receivables?
Identify and explain the key areas of accounts receivable management.
Do decrease in Account Receivable increase cash flow?
A decrease in an amount owed to you, an Account Receivable, yields additional cash flow available to fund operations, obligation, or any allocation of cash.
A sale for which cash will be received at a later date is called a sale on account?
Yes or a Credit Sale
What is the effect of a decrease in accounts receivable in the cash flows?
basically, decreasing means you activate the trans-flow protocol which allows the accountant to debit all assets while subtracting your working capital. this gives you your final accounts net profit for the term(and whatever the period concerns) then you credit this in your accounts recievable ledger account and list it as a way of income in your trial balance
yes
Why do amount for vehicle appear under non current asset and current asset?
Because it's a fixed asset
Which account shows the amount of accounts receivable that a company does not expect to collect?
Allowance for Uncollectible Accounts
Is cash in transit account receivable or cash account?
why do you debit cash account and credit receivables for cash in transit
What is current assets to total assets ratio?
Current asset to total asset ratio shows how much is the proportion of current asset with comparison to total assets of business.
How do you record in journal entry the receipt of cash from credit?
debit cash
credit accounts receivable
What is current asset to total asset ratio?
This ratio represents the structure of assets and the amount in form of current assets per each pound invested in assets. Current assets are important to businesses because they are the assets that are used to fund day-to-day operations and pay on-going expenses and include cash, accounts receivable, inventory, marketable securities, prepaid expenses and other liquid assets that can be readily converted to cash.
Is ordinary shares a current or non current assets its a debit on the trial balance?
it would be a non current asset as you plan to have shares generally for longer then a year. it would be on the debit side=] but i think ordinary shares are equity =O mind f**** i dunno im studdying it too lol
What is the difference between proforma invoice and pro forma invoice?
There is no difference - they mean the same thing. However - the correct way to write it is pro forma - they are two separate words.
