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Account Payable is a major part of Accounti g cycle that pertains to obligations arising from the promise to pay later on in connection with the purchases and or services rendered, and in more technical sense, the A/P is a measure of time for making cash outflows into cash inflows.
Devin Kling
Wiki User
∙ 13y agoAccounts Payable is a liability account that is increased by a credit and decreased by a debit. When you purchase something on credit, you are increasing your liabilities with accounts payable to reflect the future obligation of an outflow of resources from the entity.
Accounts payable can have subsidiary ledgers to keep track of specific accounts payable.
When a business except a bill of exchange it is called a bill payable and when a business promise in writing to pay specific amount in a specific date it is called a promissory note and including bills payable and promissory note that is known as Accounts Payable.
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Are creditors accounts payable or accounts receivable?
Accounts Payable
Who is responsible for posting authorized credits to accounts payable?
Accounts Payable clerk
How do you get weighted average for accounts payable?
Weighted Average Accounts payable = Opening period accounts payable + closing period accounts payable divided by 2 Example: Opening Accounts payable = 10000 Closing accounts payable = 20000 Average = 30000/2 = 15000
What is the antonym of accounts payable?
Accounts receivable is the term for amounts due, while accounts payable are owed.While this is the "opposite" of accounts payable, it is NOT an antonym.
Are accounts payable accounts that you expect will be paid to you?
are accounts payable accounts that expect will be paid to u
Are creditors accounts payable or accounts receivable?
Accounts Payable
Who is responsible for posting authorized credits to accounts payable?
Accounts Payable clerk
How do you get weighted average for accounts payable?
Weighted Average Accounts payable = Opening period accounts payable + closing period accounts payable divided by 2 Example: Opening Accounts payable = 10000 Closing accounts payable = 20000 Average = 30000/2 = 15000
What is the antonym of accounts payable?
Accounts receivable is the term for amounts due, while accounts payable are owed.While this is the "opposite" of accounts payable, it is NOT an antonym.
Are accounts payable accounts that you expect will be paid to you?
are accounts payable accounts that expect will be paid to u
What causes accounts payable to increase or decrease?
When an item is purchased on credit accounts payable increases. For example if you purchase something for $250 on credit this is the entry to increase accounts payable. Purchases 250 Accounts Payable 250 When you pay for your purchases it will decrease accounts payable. Accounts Payable 250 Cash 250
Is accounts payable a liability or an expense?
Accounts Payable is a liability. Accounts receivable is an asset.
Is accounts payable a variable cost?
Yes Accounts payable is a variable cost.
What are accounts payable entries?
[Debit] Accounts payable [Credit] Cash / bank
Journal entry to record the conversion of an 250 accounts payable to a notes payable?
debit accounts payable 250credit notes payable 250
What does the accounts payable department do?
The accounts payable is part of a company's accounting department. Accounts payable makes payments to outside firms that supplies it with a service or product.
Is an accounts payable created when your company pays cash for a purchase?
An Accounts Payable is created when...
