I have a hard time understanding the following, hopefully you can help me out.
1.) Is "Accrued Revenue" synonymous to "Accounts receivable"? Because if a company sells something on credit (create revenue), an "Accounts Receivable" is created on the Balance Sheet.
2.) What would the journal entry be between COGS and Inventory when a sale is made (lowering inventory, increasing COGS)?
3.) We speak of accrual accounting when we take into account expenses and income. But if you could only see a balance sheet of a company with existing "Accounts payable/receivable", wouldn't that be also an indication of accrual accounting?
1.) Is "Accrued Revenue" synonymous to "Accounts receivable"? Because if a company sells something on credit (create revenue), an "Accounts Receivable" is created on the Balance Sheet.
2.) What would the journal entry be between COGS and Inventory when a sale is made (lowering inventory, increasing COGS)?
3.) We speak of accrual accounting when we take into account expenses and income. But if you could only see a balance sheet of a company with existing "Accounts payable/receivable", wouldn't that be also an indication of accrual accounting?