Increases in Liability Accounts Are Recorded as Debits

question 198

True/False

Increases in liability accounts are recorded as debits.

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Definitions:

DSO

The average duration a company needs to collect payment post-sale is known as Days Sales Outstanding.

Seasonal Sales

Variations in sales volume that occur at specific times of the year due to factors like holidays or seasons.

Synchronization of Cash Flows

The strategic timing of income and expense cash flows to ensure liquidity and optimize financial performance.

Cash Management

The strategy for managing a company's or an individual's financial operations, such as collecting, investing, and managing cash and liquid assets.