0
Notes Payable is a Liability.
Wiki User
∙ 13y ago
Add your answer:
Earn +20 pts
What are the accounting journal entries for payment in kind interest on a note?
debit interest in kindcredit notes payable
What kind of companies use budget lapsing?
some universities use it and governmental agencies that have to account for all funds payable and received
Can you have a payable account as a prepayment?
Generally speaking, no. A payable account is a liability account where the company owes something. If you have a payable on your books it's something you "owe" another person/company. Prepayment refers to something that is "prepaid" or paid before hand. Prepaid accounts are generally considered "assets" on your books. For example "Prepaid Insurance" would be listed in your assets. If your company prepays for something, you list it on your books as an asset of some form. If you ordered computers from another company and prepay for receiving them, your books will list this transaction as an account receivable, which is an asset account because now the company you paid the computers for "owes you" and it will be an asset on your account. Now if we reverse this transaction and a company pays your company for computers that it has not received yet, then it becomes a liability on your account (i.e. account payable) because you now owe that company something. Therefore a payable account of any kind can not be listed as a prepayment.
When confirming accounts payable emphasis should be put on what kind of accounts?
Vendors that the company has made a large number of purchases from (in terms of dollar value). The account balance does not matter.
Is accounts payable considered a source of financing activities?
Yes accounts payable is non-formal kind of source of finance because every company allows time for payment of accounts payable and due to that reasons it is source of finance for that time period.
What are the accounting journal entries for payment in kind interest on a note?
debit interest in kindcredit notes payable
What kind of companies use budget lapsing?
some universities use it and governmental agencies that have to account for all funds payable and received
Can you have a payable account as a prepayment?
Generally speaking, no. A payable account is a liability account where the company owes something. If you have a payable on your books it's something you "owe" another person/company. Prepayment refers to something that is "prepaid" or paid before hand. Prepaid accounts are generally considered "assets" on your books. For example "Prepaid Insurance" would be listed in your assets. If your company prepays for something, you list it on your books as an asset of some form. If you ordered computers from another company and prepay for receiving them, your books will list this transaction as an account receivable, which is an asset account because now the company you paid the computers for "owes you" and it will be an asset on your account. Now if we reverse this transaction and a company pays your company for computers that it has not received yet, then it becomes a liability on your account (i.e. account payable) because you now owe that company something. Therefore a payable account of any kind can not be listed as a prepayment.
What kind of account is tax payable?
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.
When confirming accounts payable emphasis should be put on what kind of accounts?
Vendors that the company has made a large number of purchases from (in terms of dollar value). The account balance does not matter.
Is accounts payable considered a source of financing activities?
Yes accounts payable is non-formal kind of source of finance because every company allows time for payment of accounts payable and due to that reasons it is source of finance for that time period.
What kind of work does a business analyst do?
A Business analyst works with individual shareholders of a company to help them understand how the company they are invested in works. They act as an in between between companies and their shareholders.
Is notes payable a part of non interest bearing current liabilities?
Yes, as notes payable don't have interest attached with it becasue it is not that kind of loan it is just indirect loan or debt.
What kind of account for credit cards?
A credit account
What are the different kind of note?
whole note,half note, quarter note,eighth note,sixteenth note, and 32note
Is bank interest payable credit or debit?
All kind of payables have a credit balance as a default or normal balance. So by following this rule, bank interest payable also has a credit balance as normal balance.
What are the accounting journal entries for payment in kind interest on a bond?
Debit Interest Expense and Credit Bond Payable.
