Some companies find that offering incentives to credit customers can help encourage early payments, increasing cash flow and reducing the risk of bad debt. A sales discount is one incentive that many ...

Explore how accounts receivable impact cash flow and investment decisions. Learn why high or low receivables can signal financial health or potential risk.

Accounts receivables and accrued receivables are different types of customer debts that an accountant enters onto a company's income statement or balance sheet. An accountant records all receivables ...

A balance sheet is a financial document that presents the financial status of a business through an accounting of a company’s assets, liabilities, and equity. A balance sheet, when looked at with a ...

Contra accounts adjust asset values, like equipment depreciation reducing fixed assets. Increased allowance for doubtful accounts may signal rising uncollectable receivables. Companies use contra ...

Learn how general provisions function as financial safeguards, set aside by companies to cover potential future losses, and the regulations that guide their use.