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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 notes recievable a liability?
Notes receivable is an asset. Receivables are an asset in the fact that it's something another person or company owes you. Depending on how long the "note" is for, will dictate whether or not the Note Receivable is a current asset or long term asset.
If the note is to be paid in full in one year (or less) or one accounting period it is considered a current asset, otherwise it's long term.
Is salary payable a current liability or long term liability?
It should be current liability because it is made monthly, not per year.
1. Teeming and lading is method under which payment from one customer is allocated to other customer and to balance the accounts and avoiding any shortfall. The process is continued until it is discovered.
How do you record loan proceeds using cash basis acctg Debit Cash and Credit what?
If cash is received from debtors then accounts receivable will be credited otherwise to whom it is received will be credited.
What is the journal entry if goods received but invoice is not received?
i received goods but not invoice so i have not actually paid for my goods? help
Is decrease in liabilities is credit?
No, liabilities have a normal credit balance, that means that increases are also credit, and that decreases are debit.
Please refer to the link provided for debit and credit rules.
Why isn't stock dividend distributable a current liability?
Because the dividend is only available for distribution; It has not been declared.
What's the formula for quick asset ratio?
1. Quick assets ratio formula
Quick asset ratio = quick assets / current liabilities
How is a liability increased by a credit or debit?
Liability has credit balance as normal balance so credit increases the liability which means addition to current liability will increase the overall liability and reduction in liability will reduce overall liability.
Which part of the accounting equation does a sale on account effect?
by sale on account you mean goods sold to the costumer but the cash was not received immediately. the accounting equation for credit sales is to CR the revenue/sales/turnover in your income statement. DR the receivables account on the balance sheet. after the cash is received. CR the receivables account. DR the cash account.
What is the purpose of charge invoice?
serves as a billing to the customer. Issued prior to transaction and after Downpayment
What liability does oxfam have?
They have a certain amount of liability becuase they get support from the goverment and also have more then one director running the compant.
Is short term debt the same as current liabilities?
Current liabilities are liabilities that are due within 12 months. Short term debt is a current liability. However, there are other current liabilities. For example, taxes payable, interest payable, wages payable, accounts payable.
Therefore, short term debt is not the same as current liabilities.
(Short term debt is a current liability, but not all current liabilities are short term debt.)
Is an unsold product considered an asset?
Yes, it is included in inventory, which is included in assets.
What type of account is unearned revenues on?
Liabililties are recorded on permanent T-accounts.
How do you calculate average accounts receivables?
