What does liquidity mean for accounting purposes? In what order should assets be listed on the...

What does liquidity mean for accounting purposes?

In what order should assets be listed on the balance sheet?

Can an account that is not listed in the chart of accounts be used to prepare journal entries? Why or why not?

What does posting to the general ledger mean?

What is the purpose of the trial balance?

Expert Solution

What does liquidity mean for accounting purposes?

Liquidity means that the liquid asset that pays the expense in a company but in accounting liquidity means that the ability of the debtor to pay the debt when they fall due.

In what order should assets be listed on the balance sheet?

ASSET

non-current asset

Fixed asset
- Tangible asset
- Intangible asset
Non - current investment
The long term loan and advance

2. current assets

Current investment
Inventories
Trade Receivables
Cash and cash equivalents
Short term loans and advances
Other current assets

Can an account that is not listed in the chart of accounts be used to prepare journal entries? Why or why not?

Yes, the journal entries are prepared with the transactions done in the business it is not based on any of the charts. So it's not important to be in a chart.

What does posting to the general ledger mean?

Posting to ledger means that after the transactions are turned into a journal entries to analyze the credits and debits appearing in journal entries, and post those transaction amounts in the correct accounts thus ledger is prepared.

What is the purpose of the trial balance?

Thus from the word itself its a trial balance in which to measure both debit and credit balance is equal so that to ensure that all the posting are correct if, not equal there is any mistake in any of the entries.

ekkarill92 answered 11 months ago

What does it mean to "Provide Liquidity"? More specifically what does it mean to provide liquidity...

What does it mean to "Provide Liquidity"? More specifically what does it mean to provide liquidity to a market? Please also explain how banks provide liquidity and why this is important?

11. The following accounts are listed in order of liquidity... A. Current Assets B. Current Liabilities...

11. The following accounts are listed in order of liquidity... A. Current Assets B. Current Liabilities C. Both A and B D. Long-term assets E. none of the above 13. Retained earnings are found on the... A. Balance Sheet B. Income Statement C. Neither A nor B D. Noth A and B 15. A credit entry has the following effect on a liability account.. A. Increases B. Decreases C. No effect 17. Goldstone LLC purchases a machine on credit a...

What is the Liquidity Trap? What does this mean for monetary policy?

what is the liquidity trap ?what does this mean for monetary policy

1. What appears in a bank’s list of assets (in order of liquidity)? 2. Explain what...

1. What appears in a bank’s list of assets (in order of liquidity)? 2. Explain what happens when a bank is over-reserved?

What does fresh start accounting mean? When it is utilized, how are a company's assets and...

What does fresh start accounting mean? When it is utilized, how are a company's assets and its liabilities reported? What do you know about statement of realization and liquidation? What is the difference between estate and trust? Is there a different treatment taxation wise? What do you know about probate law? What are its objectives? Who pays gift tax? If a person dies without leaving a valid will, how is the distribution of the property regulated?

what order should assets appear on the balance sheet?

Listed below are items that are treated differently for accounting purposes than they are for tax...

Listed below are items that are treated differently for accounting purposes than they are for tax purposes. (i) Explain the difference between a temporary difference and a permanent difference. (ii) Indicate whether the items are permanent differences or temporary differences. For temporary differences, indicate whether they will create deferred tax assets or deferred tax liabilities. 1. An accelerated depreciation system is used for tax purposes, and the straight-line depreciation method is used for financial reporting purposes for some plant assets....

What does ABC stand for in accounting and what does it mean and how is it...

What does ABC stand for in accounting and what does it mean and how is it use?

what does capex of 283 mean in accounting

Question