Accounting Overview
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Could you provide me with an accounting introduction including the following information:
-What is the relationship between receivables and cash?
-What is their influence on liquidity and solvency?
-How do they affect competitiveness?
-Why are sales revenue and gross margin so important?
-How do they influence the profitability and value of the organization?
-How do they affect competitiveness?
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Solution Summary
This solution overviews some basic accounting concepts.
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-What is the relationship between receivables and cash?
Receivables are the amount due by debtors to the organization. Receivables convert into cash once the debtor pays the amount. Hence both are short term current assets.
-What is their influence on liquidity and solvency?
Increase in both the assets improves the liquidity and solvency of the organization. Liquidity is the ability to pay short term obligations, with the ...
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