Receivables are amounts due from another party. Accounts receivable occur when products and services are sold on credit Bad debts are uncollected accounts.

Cash is a requirement for every business. Cash buys assets and services and pays liabilities. Effective cash management improves the company’s financial health.

The time value of money shows that money today is worth more than money in the future. This article shows future value and present value calculations.

A merchandising company buys and sells inventory. When sold, inventory costs become the cost of goods sold (COGS), which is usually a company’s largest cost.

A merchandising company sells merchandise inventory to customers. Accounting for companies that sell inventory is more complex than for service companies.