Accounts Receivable

Assets become expenses when their economic benefits expire.

real accounts

If the internal service fund has positive operating income, expenditures reported in the general fund exceed the true cost of operating the government. If it is negative, the general fund understates the true cost of operating the government and net assets are effectively shifted from the internal service fund to the fund balance of the general fund.

Purchase an asset on cash will increase the purchased asset while reduce the cash amount and no impact on liability or equity section.

Rendering services on account increases accounts receivable, as well as equity (retained earnings)

For example, a company has provided cleaning services for an amount of $200; the customer is allowed a three week credit

assets = liabilities + equity

accounts receivable (assets): increases with +200

retained earnings (equity): increases with + 200

+200 = +200

asset

no it just decreases cash

Nope. It goes to the Balance sheet (Debtors) under Current Assets.

What goes into income statement is Sales (both cash and credit).

DR Debtors

CR Sales. Debtor goes to B.S and Sales goes to P&L.

no

debit insurance expense 10000

credit prepaid insurance 10000

Vicarious liability is a form of a strict, secondary liability that arises under the common law doctrine of agency, respondeat superior, the responsibility of the superior for the acts of their subordinate or, in a broader sense, the responsibility of any third party that had the "right, ability or duty to control" the activities of a violator. It can be distinguished from contributory liability, another form of secondary liability, which is rooted in the tort theory of enterprise liability because, unlike contributory infringement, knowledge is not an element of vicarious liability

yes

Generally yes.

Budgeting and Forecasting

The key is the number of days in which the credit is collected by the company. Bad debt percentage alone is not the ultimate measure, it is a combination of different credit control percentages along with the time within which debts are collected that matter.

Invoice from supplier is proof of sale by seller. In case of any defect, shortage etc. buyer can produce invoice as evidence.

Dr. Various expense accounts

Cr. Cash (in bank)

Salaries payable is liability payable in future time period.

Unearned revenue is liability until it is earned and shown under liability side of balance sheet.

materials

If you are using a cash based accounting system, then no. If you are using an accrual based accounting system, then you have to include an accurate dollar amount of accounts receivable by the company. Typically a "reserve for bad debt" is also listed. This is a dollar amount which reflects a reasonable estimate of what might not be collected. The total of amount of Accounts Receivable minus the Reserve for Bad Debt is the amount of money you expect will absolutely collected.

Current liabilities included all liabilities payable in current fiscal year like accounts payable, current portion of long term liability etc.

Because money is being received from customer we are not owing.