Accounts Receivable Questions

The journal entry to record a credit sale is Accounts Receivable. Credit sale is nothing butthe customers pay at the time of buying.

Assets minus liabilities equals Equity.

The principle of diversification tells us that spreading an investment across many diverse assets will eliminate some of the total risk.

Asset means anything that can be converted into cash. Here in banks, the loans disbursed by Bank to its customers is considered as assets because when they are cleared by them, then they are directly converted to cash.

Other things the same, when the interest rate rises people would want to lend more, making the quantity of loanable funds supplied increase.

Depreciation is a process of cost allocation, not valuation. In accounting, the term depreciation refers to the allocation of cost of a tangible asset to expense to the periods in which the asset is expected to be used to obtain the economic benefit.

In brief, Depreciation is fall in the value of assets due to wear and tear over a period of time, it is a loss.