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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
Is an account receivable a revenue?
Accounts Receivable is an asset since it is a resource controlled by the entity as a result of past transaction with the future economic benefit to flow to the entity.
Sale of goods and services is a revenue and not accounts receivable.
Do increase of notes receivable increase or decrease cash flow?
Increase in notes receivable reduces the cash flow because if sales are made in cash then cash will immediately increase but if sales are made on credit it means company has not received the cash and that's why it reduces the cash.
How do you integrate cost accounting with financial accounting?
Cost accounting is usually involved with management accounting. Financial accounting tends to deal with the past and presents information like statements for public and private use. Management...Cost Accounting related to accounting methods and techniques used by managers to operate their firms. Examples include raw materials, labor and manufacturing overhead management. On the other hand,
Difference between accounts payable and creditors?
- Accounts payable are usually the suppliers to a company who are providing credit terms on purchases. Sundry creditors are any other creditors which dont fall into the usual categories on the balance...
- account receivable- money coming in for profit account payble-money going out for a expense .
- Accounts payable refers to liabilities owed to creditors from whom you've made a purchase. Notes payable refer to liabilities owed to investors from whom you've borrowed money by issuing a debt...
How is a long term liability that is paid deducted from net income for the current year?
Long term liabilities do not get deducted from net income.
Gross Income - Expenses = Net Income
Net Income - Dividends = Retained Earnings.
Paying a Long Term Liability has the following effects on the accounting equation.
Decrease Assets (generally current as they are usually paid in cash)
Decrease Liabilities (it's less you owe)
Owners (stockholders) Equity is unchanged.
What is non current liabilities?
Non-current liabilities are those liabilities that are not expected to be paid in one year or less.
For example, you have taken a 3-year loan. Now, the first year payment (For the first 12 months) should be paid within the year. But the for next two years the amount can be paid later in the future as the duration is more than one year. This would be a non-current liability.
Which account is reported as long term liability?
- In double-entry accounting it's the same basic entry for all liabilities, the accounts used will vary depending on the type of liability in which you may be referencing. I'll give a couple examples.
- Yes they probably will. The only difference between them is that current liabilities are due within one year and non-current liabilities are due in more than one year. So unless a non-current one is.
How do you write purchases entry in voucher?
Panasonic A/c Dr. Rs. 50000/-
To Cash A/c Rs. 50000/-
( Being amount paid for purchase of Panasonic TV from Panasonic )
fales
What is invention in entrepreneurship?
- The two words are exactly the same. An entrepreneur is somebody who shows entrepreneurship by creating offerings for a marketplace. A successful entrepreneur runs a profitable business where profits...
- (Old version- please read, revise or delete!!!) A invention is a new device that was not created before but has just been created by mankind. an invention is some
Is stationary assets current assets?
Yes it is, a non current asset is one that will last over 12 months, a current asset is one that will be used up within 12 months.
What is sundry debtors and sundry creditors?
- You may have a category of sundry, or miscellaneous, creditors on the books for occasional or small vendor relationships, rather than setting up a separate vendor account for these infrequent...
If we provide some services to the vendors they are paying for our services therefore the person who are paying us becomes our sundry debtors
- sundry creditor shows credit balance.
Why should payments made be entered immediately into the accounting system?
to avoid duplicate payments
How do you account for sales to subsidiary?
The parent company accounts for the sales to its subsidiary as "sales" or "revenue".
Let's look at Wal-Mart. As most of us know the "Main Office" or "Headquarters" to Wal-Mart is located in Bentonville, Arkansas. We also know that this isn't the actual Wal-Mart store, there are thousands of those around the Country. Now let's look at a local Wal-Mart store. This store operates under the supervision of the "home office", however this individual store does not "own the property" nor does it make their own goods that they sale, instead, they "rent or lease" the building from the home office as well as purchase many of their goods from the warehouse in Bentonville. These purchases and expenses are the local Wal-Marts expenses and operating cost, while for the home office or aka Parent Company it becomes Revenue (income.)
Which category is days sales in receivable?
The days sales in accounts receivable ratio (or the collection period ratio) falls under the category of liquidity ratios. It measures the number of days that net receivables are outstanding, and is calculated by:
(365 days × Average Net Receivables) / Net Credit Sales
Days Sales in Receivables measures how long it takes for the average debtor to settle his/her account; the smaller the ratio, the faster it takes and the better it is for the company.
Why is Cost accounting a subset of management accounting?
The main purpose of cost accounting is to provide management with financial information necessary to make business decisions. Cost accounting focuses mainly around cost variances, budget analysis, etc.
Financial accounting on the other hand ensures that information being reported to outside investors/users is accurate and in compliance with a given financial reporting framework.
Hope this helps...
Is accounts recievable an asset account?
Accounts receivable is that amount which is creates due to sales to customers on credit and used instead of cash from customer that's why it is current asset.
What is journal entry for cash sales?
like the following:
cash in hand (Dr)
Sales or Sales Revenues (Cr)
&
Cost of goods Sold (Dr)
inventory (Cr)
Why is corporation tax a current liability?
That is because most if not all country's tax collectors will want the tax within the next financial period. The definition between current and non current is the time when they fall due with current being within the year and non current after a year.
Deposits that the customer makes, money that the customer puts into the account.
