Companies often extend credit to other businesses in the form of a note, or a short-term loan. Most notes pay a stated rate of interest, resulting in interest revenue that the lender must record at ...

Calculating an accounts receivable turnover ratio offers insight into how well a business handles the collection of its receivables. By using an AR turnover formula, businesses can determine the ...

In accrual accounting, determining exactly how a company generates or burns its cash is not as straightforward as you may expect. Because of the way companies must record their accounts payable and ...

Even if your business doesn't center around banking, it may involve a loan occasionally. Suppose you're a metal company, and a customer wants to buy tungsten now and pay later. You sell $5,000 worth ...