What is the difference between accounts payable and accounts receivable?
When the amount of the credit sale is remitted, Company B will debit its liability Accounts Payable and will credit Cash. Company A will debit Cash and will credit its current asset Accounts Receivable. Liabilities are any items on the balance sheet ...
Petty Cash
Any costs resulting from theft, such as door or lock repair, can also be recorded as theft expense. Debit your cash short and over account in your journal entry by the amount of cash short. Alternatively, credit your cash short and over account by th...
NPV: The Gold Standard of Financial Decision Making Tools
For donations to qualify, they must be given to an approved organization. Tax shield strategies are available for both business and individual tax returns. The classic example of a tax shield strategy for an individual is to acquire a home with a mor...