Meaning of Accounts Receivables Homework Help
Get topic clarity with meaning of accounts receivables homework help
In order to understand the working capital of a company, it is necessary to understand accounts receivables fully. It usually represents the line of credit that is extended by a company to its customers the period of which can range from a few days to a year. Thus, it is crucial to understand it fully which you can with meaning of accounts receivables homework help.
What are accounts receivables?
Accounts receivable is defined as the amount that a company has the right to collect from its clients. It is the outstanding invoice of a product or service which the company has received but not paid for yet. It is displayed on the balance sheet as an asset and is quite different from notes receivables.
With meaning of accounts receivables assignment help, you can further understand the complexities of the subject. You can learn about it thoroughly to have a career in such a discipline.
How is it different from account payable?
Account payable and account receivable are different from each other and meaning of accounts receivables homework help will help you to understand that fully.
The debt that a company owes to its suppliers is what is known to be account payable. Accounts receivable are the amounts that the company has a right to collect from its customers or clients. While accounts payable is a liability, accounts receivable is an asset.
How are accounts receivables recorded?
You can understand the process of recording account receivables better with meaning of accounts receivables assignment help.
Number of accounts receivable is increased on the debit side and decreased on the credit side. Once the cash payment from the customer is received, the cash increases and account receivable decreases. When the transaction is recorded, cash is debited and account receivable is credited.
How does it work?
In order to understand accounts receivables, it is essential that you opt for meaning of accounts receivables homework help from us at helpmeinhomework.com. We aim to make subject comprehensible to the students so that you face no difficulty grasping the basic concept.
Following is an example that would help you to understand accounts receivables.
Let’s say a company ABC sells $1 million of car parts to a car manufacturer and gives them 60 days to pay for the parts. When the company sends the invoice to the customers, the inventory will be decreased by $1 million and will increase its accounts receivables by $1 million. When 60 days have passed, cash will increase by $1 million and accounts receivables will decrease by $1 million.
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