How does an accrual basis give better income? An accrual basis gives more income because you offer customers credits to buy the goods from you. When you sell, you will have more sales because people like to buy on credit as they have time to pay. Of course, when you write […]
What happens when liabilities exceed assets? What is a liability? Liability is the amount a business owes to others, like more loan payments and creditors, which means the company is in debt. What is an asset? An asset consists of land & buildings, equipment, machinery, and debtors, that is, the money […]