Both Company A and Company B use accrual accounting.Both have $80,000 in sales revenues and $50,000 in expenses for their first month of business.Company A allows cash sales only.Company B sells to its customers on account and as of the end of the month its customers owe $30,000.Show how Company A's and B's four financial statements compare by putting an X under either the Same or Different column for each of the statements.
Definitions:
Warehouse Financing
A form of inventory financing where loans are made to manufacturers and processors on goods stored in a warehouse as collateral.
Inventory Financing
A line of credit or loan dedicated to purchasing inventory, using the inventory itself as collateral.
Control Agent
An entity or individual assigned to oversee and manage specific aspects of a project, process, or operation to ensure it meets predetermined criteria or standards.
Current Income
This refers to the total amount of income generated from various sources, including wages, investments, and other types of income over a current period of time.
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