Why aren’t transactions involving accounts payable considered to be financing activities?

Q: What is the difference between account receivable and account payable ?

A: Diffecrence between the accounts receivable an accounts payable are as follows:

Q: Which of the following transactions would be recorded if using the accrual basis ofaccounting but…

A: Given: To determine the following transactions would be recorded if using the accrual basis…

Q: What are the types of accounts receivable?

A: Account receivable is an asset account that represent amount due to the company from debtors…

Q: What is the difference between Accounts Payable and Accounts Receivable? Explain each in generic…

A: Financial Management: Financial management comprises of two words i.e. Finance and management.…

Q: Recognize the link between money and credit? Explain

A: Money is defined as the financial medium used to facilitate transactions between parties. Money…

Q: What do you mean by tangible real accounts and intangible real accounts?

A: Real Account :Real Accounts are the ones that are related with properties, assets or possessions.…

Q: are payments and receipts of interest classified as operating activities rather than as financing or…

A:

Q: What is Debt Service?

A: Step 1 The amount of money required to pay interest on the loan with the principal over some time is…

Q: What is the difference between the cash basis and the accrual basis of accounting?

A: The accounting is a process to identify the business transactions, record the transactions and…

Q: Would a sale of equipment for cash be considered a financing activity or an investing activity? Why?

A: Definition:   Investing cash flow: The amount of cash disbursed or received in investing activity in…

Q: What is the difference between a nominal account and a real account?

A: There are three types of accounts in financial statements, Real Account Personal Account Nominal…

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 pledging of accounts receivable?

A: Accounts receivable: Accounts receivable is defined as any amount of money payable by…

Q: Why debtors control account may have credit balance

A: DEBTOR CONTROL ACCOUNT- IT REFLECTS THE TOTAL AMOUNT OWNED BY ALL THE INDIVIDUAL DEBTORS. THE…

Q: Why are the rules of debit and credit same for both liability and capital?

A:

Q: Could you explain the relationship between money, credit, and financial institutions

A: Money is the center of the universe. Money is being used to buy and sell goods and services..…

Q: Identify transactions that are classified as financing activities.

A: Definition:   Statement of cash flows: This statement reports all the cash transactions which are…

Q: Is Capital debit or credit?

A: As per Business Entity concept Business is treated as an entity which is different from Proprietor.…

Q: TRUE OR FALSE? The debit balances in suppliers' accounts should be netted against accounts payable.

A: Accounts payable is the amount owed by the business entity towards the suppliers in respect of the…

Q: How are credit balances in accounts receivable reported on the financial statements?

A: Sales is the revenue being earned by the business on delivery of goods and services by the business.…

Q: Which of the following statements best describes financial instruments? a. All financial instruments…

A: financial instrument are asset tha can be traded in the financial market. a. finicial asset are not…

Q: Why must a balance sheet always balance? What are the major assets and claims on a commercial bank’s…

A: Balance sheet is called as statement of assets and liabilities. Liabilities represent claims of the…

Q: Why is it advantageous for a company to finance its receivables?

A: Accounts receivable is the amount due to a firm for the use of goods and services but not yet paid…

Q: Which of the following statements best describes financial instruments? Answer a. All financial…

A: Option C. Financial instruments can transfer resources and risk between people    Explanation…

Q: what is accounts payable?

A: What is accounts payable?

Q: What information does the cash flow statement reveal that the other necessary financial statements…

A: The answer:

Q: Why are payments received from customers in advance, for either services to be performed and/or for…

A: Advance payment received from the customer there are two reasons which are mentioned are as follows:…

Q: what is credit transactions?

A: credit transactions:-    Credit transaction is a transaction of which the repayment of money loaned…

Q: plockchain financial transactions?

A: Blockchain helps in making transparency in the financing industry while users are considering the…

Q: 3. What is the Difference Between the Cash Basis and Accrual Basis of Accounting?

A: Cash Basis Accounting is a method where Revenue recorded only when cash is recieved and Expenses are…

Q: Identify the relationship between money, credit?

A: Money is considered as the financial medium exchanged between parties that enable the transaction.…

Q: What is meant by the term notes payable?

A: Notes payable is an account that details the specifics of a borrowed amount in note form. Its a…

Q: A credit balance on accruals account indicates?

A:

Q: how do debits and credits work?

A: Debit and Credits: Debit and Credits are used as a basis of bookkeeping to book balance in the books…

Q: What is disaggregated financial information?

A:

Q: is purchashing something on credit an operating activity or a financial activity

A: Assuming that purchase of something as the purchase of inventory.