0
Accounts Payable are a liability account, representing money you owe your suppliers.
Accounts payable are funds you owe others—they sent you an invoice that is still “payable” by you.
Accounts payable are usually due within 30 days, and are recorded as a short-term liability on your company’s balance sheet.
Only accrual basis accounting recognizes accounts payable.
Accounts payable (AP) today is a strategic business function that optimizes working capital, enables more significant savings for the business, and helps improve supplier relationships. Many companies are using IBN tech LLC Accounts Payable Outsourcing Services, and they find that they save up to eighty percent on the cost of labour alone. Additionally, they save money related to errors on invoices.
ibnbookkeepingservic...
Itzel Brown
Emie Beahan
Wiki User
∙ 11y agoAccounts payable is a liability account.
Add your answer:
Earn +20 pts
What type of account is sales tax payable?
Liability
What kind of account is Note Payable - shareholders?
Notes Payable is a Liability.
What account that would be credited for the amount of tax collected on sales?
accounts payable
Does sales tax payable have a normal credit balance?
All payable maintain a credit balance. A payable is a liability account and therefore like a liability does increase with a credit and decrease with a debit.
How do you recognize account payable?
Account payable is an account that is a Liability (current). When a person or company owes another company money on account, that is an account payable.
WHAT IS etd payable?
ETD payable = Employer Tax Deductions Payable
How do you post sales tax payable as journal entry?
debit sales tax expensecredit sales tax payable
How do you journalize a sales tax payable?
Since you are using a "payable" account we do "not" touch cash until the actual payment is made. We however still know we need a debit and a credit for this transcation. To put this in our journal we will Debit Sales Tax Expense (check your company for exact account name) Credit Sales Tax Payable (again check your company for account name) Once you pay your taxes then you have to adjust these entries to reflect payment. In order to do that, we again use two accounts, this time however we do not touch Sales Tax Expense, it must stay there until we close our out books, we do however have to show that the payable has now become paid and that we no longer have that amount of cash on hand. This transaction will be adjusted in the journal as Debit Sales Tax Payable (to zero out this account or adjust it accordingly) Credit Cash (to show we no longer have that amount of cash on hand)
What is Pst payable accounting?
it is other taxes payable like hormonised sales tax. It is not Income Tax or corporate Tax.
What are the procedures account payable?
acoounting payable
What is the debit and credit in made a payment on accounts payable?
account payable account debit to bank account
What is a FIT payable?
It stands for federal income tax payable.
