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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 accounts payable a liability or an expense?
Accounts Payable is a liability. Accounts receivable is an asset.
A company has a total assets of 10250 dollars and its owner equity is 5000 dollars how much are the liabilities of the company?
assets = liabilities + equity$10,250 = liabilities + $5,000 --> liabilities = $10,250 - $5,000 = $5,250
In Personal Finance
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Debit Sales and credit Accounts Payable.
Must a chart of accounts prepared at the start of every accounting cycle for every financial period?
Generally the answer to this question is no, a chart of accounts does not have to be set up for every financial cycle, usually the chart of accounts is set up in the beginning of the business, when the business is first created, it is updated periodically too allow for new accounts to be added to the chart, but it is not set up each cycle from scratch.
When do you get payment if the payment term is net 60?
Net in 60 strictly means that the balance is due 60 days from the invoice date. If the invoice date is January 15th, then the balance (net) is due on (or before) March 15th. 60 days after the invoice date. Other terms used are 2n20 net 60 which merely means the payer of the invoice can take a 2 percent discount if the amount due is paid off on or before the tenth day after the invoice date.
Double entry system of book keeping?
A double entry system in bookkeeping is a set of rules for recording financial information in a financial accounting system. In this system every transaction or event changes at least two different nominal ledgers accounts. Nowadays book-keeping tasks are made very easy by availability of softwares online. One such online bookkeeping software is nuima.biz. There are so many facilities for maintaining records such as customers list, employee list, banking transactions are available.
http://numia.biz
Difference between current assets and current liability?
Current assets are those items which are usable during current year while current liabilities are those payments which are payable within one fiscal year.
Is accrued salaries payable a liability account?
Yes, accrued salaries are those amount which is due but not yet paid and payment is deferred for future time.
Are Accrued wages a current liability?
Accrued liabilities are a current liability if they are due within one year.
What is the Difference between letter of intent and a purchase order?
LOI is for giving work to Employer
Purchase order is for Components in work (Like Materials)
Simply
LOI- WORK
PO - Material
Is an electricity account an example of a trade account payable?
No Electricity account is non-trade accounts payable as trade accounts payable are those suppliers only from which company purchase supplies for sale purpose.
What is a subsidiary account for accounts payable?
the accounts payable account is on the general ledger and is generally comprised of many smaller vendor accounts which are listed and tracked separately in the "accounts payable subsidiary ledger". So each vendor would be a subsidiary account of the accounts payable ledger.
What records a decrease in an asset?
- A sales refund will reduce income (debit to Sales Returns) and assets (credit to cash).A debit to Depreciation Expense and a credit to Accumulated Depreciation will reduce assets and net income.
- It means that some transaction decreases assets and liabilities at the same time. For example, payment of accounts payable results in a decrease in cash and a decrease in accounts payable.
How do you increase a liability?
A liability account is a credit account, and credit accounts can be increased by writing a credit in the journal entry. Therefore, a liability is increased by crediting it.
What would be a temporary account A inventory b sales c accounts payable d accounts receivable?
a. inventory
What is coding in accounts payable?
Coding in accounts payable is invoice processing. Invoice processing involves the handling of incoming invoices and their variations and types.
ur assets will be increased by 45000 ,cash will decrease by 5000 and liabilitues will increase by 40000.
What type of asset is accounts receivable?
Accounts have 3 types of accounts those are : Real, Nominal, Personal.
Nominal accounts are those accounts which deals in income and expenses.
Real accounts deals in accounts like cash, accounts recievable etc.
Personal accounts deals in accounts of people like Mr.Sam account.
So Account Recievable is Real account. ---- In financial accounting, accounts receivable is not a "cost" at all. Accounts receivable is an account that records money owed to a company by a customer. This account is recorded under the "current asset" accounts on the Balance Sheet.
What is the difference between non current asset and plant asset?
plant assets comes under non current assets.
now
non current assets are those which are not easily feasible in cash like land, building or other fixed properities.
What does it mean to advance the payment due?
To put it simply, it is a way of telling you to pay them the money you owe.
Check received is that an account payable?
No it's cash. Though it is in the form of a "check" it is easily transferred to cash and is recorded as such. Also, even if it wasn't considered cash (it is) it would be a receivable, not a payable.
Does Credit mean the increase side of an account?
what do you mean by increased side? it depends on which account you are talking. in bookeeping entries of a company a credit on its bank account means money going out the business. in a reserve account it means money being added to the reserves!
If on the other hand you are talking about a bank account (personal) this normally means depositing.
Is merchandise inventory considered an asset?
Yes merchandise inventory is asset for business which company maintain for sale purpose and to earn revenue.
