Patterns of Financing 610

Corporate Finance PowerPoint presentation. In this presentation, we will discuss patterns of financing, get ready, it’s time to take your chance with corporate finance patterns of financing. As we think of financing patterns, let’s first think of our accounting equation assets equal liabilities plus equity assets are what the company has, we have those assets in order to help us to generate the revenue, we need to finance those assets, either with liabilities or equity, equity being the retaining of earnings over time, the earnings that have not been paid out in dividend and or investments that have been put into the company for the distribution of stocks.

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Receivables Introduction

In this presentation we will take a look at receivables. The major two types of receivables and the ones we will be concentrating on here are accounts receivable and notes receivable. There are other types of receivables we may see on the financial statements or trial balance or Chart of Accounts, including receivables, such as rent receivable, and interest receivable. Anything that has a receivable, it basically means that someone owes us something in the future. We’re going to start off talking about accounts receivable that’s going to be the most common most familiar most used type of receivable and that means something someone, some person some company, some customer typically owes us money for a transaction happening in the past, typically some type of sales transaction. So if we record the sales transaction, that would typically be the way accounts receivable would start within the financial statements, meaning If we made a sale, we would credit the revenue account, we’ll call it sales. If we sell inventory, it would be called sales. If we sold something else, it might be called fees earned, or just revenue or just income, increasing income with a credit, and then the debit not going to cash. But going to accounts receivable.

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