In contrast to cash basis accounting, accrual basis accounting permits businesses to record sales made on credit as revenue as long as they meet certain conditions. First, the transaction that ...

The accounts receivable ratio is one of the financial performance indicators that businesses monitor. It is useful for companies that sell goods and services on credit. Accounting theory considers the ...

Jason Fernando is a professional investor and writer who enjoys tackling and communicating complex business and financial problems. Amy is an ACA and the CEO and founder of OnPoint Learning, a ...