A debit card and a credit card can play a strategic role in your financial strategy. The decision to apply for a credit card and the way you choose to use your debit and credit card will depend on your financial situation. We’ve put together a list of advantages and considerations for each. According to…
The supplier should have a completed paying-in slip stub/counterfoil in the paying-in book, showing the payment of the check into the bank. Sometimes, checks are not honored by the customer’s bank (i.e., they are dishonored). It is not normal in business for Acme to then issue a receipt for the cash received if it was…
Under cash accounting, the company would record many expenses during construction, but not recognize any revenue until the completion of the project (assuming there are no milestone payments along the way). Therefore, the company’s financials would show losses until the cash payment is received. A lender, for example, might not consider the company creditworthy because…
Like in the first year calculation, we will use a time factor for the number of months the asset was in use but multiply it by its carrying value at the start of the period instead of its cost. Since the assets will be used throughout the year, there is no need to reduce the…
If you notice this trend, you can adjust your collection practices, such as sending invoices right away or working with a debt collection agency. This way, you can ensure clients pay the total amount due in a timely manner and improve your days sales outstanding average. One of the main uses of an accounts receivable…