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If fixed asset requirements increase with increases in sales, the firm will need more sources of finance.
Debit
An entry on the left side of an account ledger, indicating an increase in assets or expenses, or a decrease in liabilities, equity, or revenue.
Credit
A bookkeeping entry that increases the balance of liabilities and revenue accounts, or decreases the balance of an asset or expense account.
Accounts Receivable
Liabilities customers hold towards a business for the delivery of goods or services that have not been paid off.
Financial Statement
Documents that present the financial activities and condition of a business, including the balance sheet, income statement, and cash flow statement.
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