How does receiving a payment from a customer on account affect the accounting equation?

Q: Is Accounts Payable a credit, a debit, or both?

A: Current liability: It implies to the debt obligation that is to be repaid within a span of one year.…

Q: How does the time period assumption affect an accountant's analysis of business transactions ?

A: Time period assumption state that business organizations are required to prepare and present their…

Q: What means accounting information?

A: Accounting information -   the information which is generated from the accounting process is known…

Q: What are the basics of Accounting?

A: Accounting: Accounting is a system, or a process of collecting and organizing economic transactions,…

Q: how does accounting work?

A: Accounting is the method of recording all the financial transactions of the business. This process…

Q: What is accrual accounting and how does it work?

A: Accrual accounting is a system of accounting wherein: Revenues are recognized as and when they are…

Q: What is the primary purpose of an accounting system?

A: the primary objective of accounting is to record the financial transactions in the books of…

Q: What does the accounting equation show?

A: An accounting equation shows the relationship between Assets, Liabilities and Equity of a entity. It…

Q: How do debits and credits work

A: Debit and credit entry are part of double entry book keeping system. This is used to make an entry…

Q: Analyze the effects of transactions on the accounting equation

A: Accounting equation:   Accounting equation is an accounting tool expressed in the form of equation,…

Q: What are the process of accounting?

A: The question has covered the concept of the process of accounting.

Q: what is real account ?

A: There are three types of accounts that are used in accounting: 1. Personal 2. Real 3. Nominal Real…

Q: Tell me Features of accounting?

A: Accounting process starts with the process of maintaining books of accounts. Relevant business…

Q: chart of accounts

A: Chart of Accounts -: A Chart of Accounts also known as COA is an index of all the financial accounts…

Q: Is Accounts Payable a debit, a credit, or a combination of the two?

A: Account payable has always a credit balance. It is liability for a person who have acquired some…

Q: What is the Accounting Information System in today's accounting practice?

A: The answer for the theory question on role of Accounting information system in today's accounting…

Q: What are different types of accounting information?

A: Introduction: Accounting: Accounting is an art of recording, classifying , summarizing and…

Q: What is the difference between accounting and bookkeeping

A: Bookkeeping and accounting are both are relatable and most essential for business transactions to be…

Q: What are the basic accounting rules?

A: Introduction: To understand the golden principles of accounting, you must first learn everything…

Q: When it comes to accrual accounting, what do you name the principles and goals that influence the…

A: It is required that a cost be recorded in the same period as the corresponding income is collected…

Q: What is the accounting cycle?

A: Accounting cycle means the process of collecting, processing and reporting of the financial…

Q: In accounting for a business, what does it mean to apply credits? Please explain.

A: Business transactions are happenings that have a financial impact on the financial statements of a…

Q: In accounting, what are the many forms of accounting information?

A: Introduction: Accounting is the art of documenting, categorizing, summarizing, and evaluating the…

Q: Who are the users of accounting information?

A: Users of accounting information means the stakeholders that will use the accounting information for…

Q: Why creditors control account may have debit balance

A: The creditor's control account displays the amount a firm has to give to the suppliers.

Q: What is accounting information?

A: Solution:- Accounting information means as follows under:-

Q: The accrual basis of accounting records expenses when they are :

A: Accrual basis of accounting follows matching principal where cost incurred to earn revenue are…

Q: W

A: According to AICPA, "accounting is an art of recording, classifying, summarizing in a significant…

Q: What is the purpose of accounting?

A: Accounting is the process of recording the financial transactions and events of a business. The…

Q: How do you maintain accounting accuracy?

A: Maintaining accuracy in the accounting records is an essential requirement for every entity involved…

Q: What are the roles of transaction in accounting?

A: The transactions are the business events that can be measured in monetary form.

Q: What is an accounting system for?

A: Accounting system basically refers to the way of maintaining the books of accounts. It is an…

Q: efine what is accounting? How accounting used in our daily activities? What is the nature of…

A: Accounting has emerged as a subject for students that can be used in wide range of activities, say…

Q: What are the steps of the accounting cycle?

A: Accounting cycle is a cycle which defines as the overall accounting process starting from the step…

Q: What is the meaning of accounting?

A: Bookkeeping refers to the way of recording day-to-day business transactions and information.…

Q: Explain Accrual Accounting as it relates to revenue and expenses.

A: Accounting refers to recording, posting, analysing, summarising and communicating the financial…

Q: how much will the company have in the account,

A: We need to calculate the future value = Future value= PV(1+R)^n PV= Prasant Value R = Rate of…

Q: how to bill customer using accrual-basis accounting

A: in Accruals accounting of income or revenue they are billed when goods or services are given but…

Q: accounting records the impact of a business event when it occurs, regardless of whether the…

A: There are two concepts of accounting, which are used mostly. These are cash basis of accounting and…

Q: How do i close  expense accounts while getting ready to prepare financial statements?

A: Closing entries: Closing entries are recorded in order to close the temporary accounts such as…

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is