Journaling is an essential part of objective record-keeping. Journals are straightforward to review and easily transferred later in the accounting process. Journals, in addition to the general ledger, are often reviewed as part of a trade or audit process. Information that is recorded in a journal...
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Cash flows of operating activities depend on working capital, which is impacted by AR and AP changes. Working capital balances show the number ofcurrent assetsa company has to cover its current liabilities. Current assets include cash, accounts receivable expected within one year, and inventory. Cu...
Examples of cash on delivery are when customers pay for a pizza that is delivered to their home, when a courier delivers something that a customer has agreed to pay for when it is delivered, or when a customer picks up clothing from the dry cleaning store. Some online stores will allow c...
CVP analysis is used to determine whether there is an economic justification for a product to be manufactured. A target profit margin is added to the breakeven sales volume, which is the number of units that need to be sold in order to cover the costs required to make the product (and ar...