Accounts Payable

Sometimes referred to as trade payables, accounts payable is an account sub-ledger that records all the amounts that a company or a person owes to suppliers but has not paid yet.

4,583 Questions
Banking
Accounts Payable
Swift Codes and Routing Numbers

Will RBI asks COT code?

yes cot code is cost of transferring code that is true to transfer money from surely to transaction the money from another A/c 17491050009254

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Accounts Payable
Acronyms & Abbreviations
Police and Law Enforcement

What does ARO stand for?

ARO stands for After Receipt of Order.

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Business Accounting and Bookkeeping
Accounts Payable
Accounts Receivable
Budgeting and Forecasting

Example of operational audit?

purchase, marketing, selling and distribution expenses, production

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Business Accounting and Bookkeeping
Accounts Payable
Accounts Receivable

Is account payable an inflow or outflow or neither?

The recording of an account payable does not create any current effect on cash flow, so it is neither creates an inflow or outflow.

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Accounts Payable
Business Finance
Accounts Receivable

What does 30 days net monthly mean?

It's a payment term meaning: payment due 30 days from the end of the month in which the invoice is raised

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Business Accounting and Bookkeeping
Mathematical Finance
Accounts Payable
Financial Statements

What are two basic financial statements.Explain their importance to the various uses?

The two basic financial statements are the Income Statement or Profit & Loss Statement and the Balance Sheet. The Income Statement reflects the revenues and expenses for a period in time such as January 1, 20xx through the date you are working on say August 31, 20xx. These revenues and expenses give you the net income or (loss) for that particular period.

The Balance Sheet is a report of the business for a point in time, August 31, 20xx. The assets and liabilities of the business as well as the owners equity in the business make up the Balance Sheet. Assets - Liabilities = Owners Equity. The net income or (loss) from the Income Statement flows over to the Balance Sheet under the Equity section.

Business use these reports to understand the financial position of their business ans where to make changes for future years. Investors use these reports to make decisions on whether they want to invest or provide loans to the business. Accountants use these reports to prepare tax returns for both individuals and businesses depending on the type of entity the are...corporation, partnership, sole proprietorship.

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Business & Finance
Accounts Payable

What does payment term prepaid mean?

When the term 'prepaid'' is inscribed in payment, it means that the payment has already been made in advance before resumption of delivery. The frequently used term in Overseas Trade is ' Freight Prepaid'which means that the freight has been paid by Exporter and that no freight is payable at destination. In fact the hypothetical quantum of freight amount is considered while calculating export pricing that is quoted before the buyer.

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Business & Finance
Accounts Payable
Accounts Receivable
Budgeting and Forecasting

What do you mean by process costing?

Process Costing is the accounting of those industries which are involved in those products production which has no specific or clear start of fiscal year or accounting year because they are continuously involved in producing products like textile industries or manufacturing industries. In these industries work is done in more then one departments and products have to go through many departments to complete and in this process each department don't know how much cost they have incurred on that product to complete and as that product is complete in more then one department so it is not possible to allocate all costs and revenues to one department so process costing is used to continuously calculate that how much cost is incurred in which department so that the revenues and responsibilities are also allocated to those departments accordingly.

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Intellectual Property
Credit and Debit Cards
Business Accounting and Bookkeeping
Accounts Payable
Patents and Patent Law

Is Patents a credit or debit?

Debit, assuming you're BUYING a patent. Credit, if you have RECEIVED one from another company, or if you have received royalties or other income from one.

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Personal Finance
Credit and Debit Cards
Business Accounting and Bookkeeping
Money Management
Credit
Accounts Payable

Is goodwill credit or debit?

Goodwill is an asset to the entity .Hence, the same will always be with debit balance. Companies should not recognise goodwill, unless the same is earned through purchase of other entity

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Business Accounting and Bookkeeping
Accounts Payable
Budgeting and Forecasting
Business Taxes

Different Kind of liabilities?

There are many forms of liabilities, they should be recognised when they are able to be reliably measured and are certain. They can be categorized into Current and Non-Current depending on the operating cycle of the business (typically anything beyond 12months is non-current). A liability is an obligation on the part of the business resulting from a past transaction that requires a future outflow of resources. Some examples include: Accounts Payable Notes Payable Bank Loan Interest Payable Salaries Payable Employee Deductions Payable Unearned Revenue A + L = OE Accounts must balance to that equation.

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Business Accounting and Bookkeeping
Accounts Payable
Accounts Receivable

Is temporary overdraft a current liability?

Yes. An overdraft simply means that the bank has paid an item that was presented against your bank account and represents, essentially, a short term loan from the bank to you. Like any other short term obligation, it is a current liability.

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Accounts Payable
Accounts Receivable

What does it mean to advance the payment due?

To put it simply, it is a way of telling you to pay them the money you owe.

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Accounts Payable

What does incurable mean?

Incurable is usually used to describe a condition which cannot be be cured or fixed.

An example of a sentence containing 'incurable' would be;

"The Doctor described the patients prognosis as dire, since his cancer was incurable, ".

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Business Accounting and Bookkeeping
Accounts Payable

What is a reasonable profit margin?

what is the difference between reasonable profits and economic profits

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Debt Collection
Business Accounting and Bookkeeping
Accounts Payable

Prepare Debtors control account and Creditors control account?

The financial year of Ali & Co is closed on June 30, 2007. Data regarding Ali & Co is

given below:

Rs.

Opening balance

Debtors 75,000

Creditors 125,000

Closing balance

Debtors 100,000

Creditors 150,000

Sales

Cash 100,000

Credit 130,000

Purchases

Cash 80,000

Credit 100,000

Purchase returns (From credit purchases) 5,000

Receipts from debtors ? 88500

Payments to creditors ? 65000

Discount allowed 2,000

Discount received 5,000

Bad debts written off 13,000

Increase in provision for doubtful debts 2,500

Required:

Prepare Debtors control account and Creditors control account.

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Jobs & Education
Business Accounting and Bookkeeping
Acronyms & Abbreviations
Accounts Payable

What does MYOB mean in accounting?

MYOB is an acronym for "Mind Your Own Business".

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Bachelors Degrees
Business Accounting and Bookkeeping
Accounts Payable
The Difference Between

What is computerized accounting?

Accountants measure a business entity's income, expenses and changes resources. Back in the day, prior to the widespread use of spread sheet and computer applications, Accountants used journals and ledgers in which they recorded business transactions. Hence the term keeping the books. As computer applications became main stream, this keeping of the books Accountants do, has gradually migrated into computerized spreadsheets. Gradually, Accounting systems dedicated to this function were developed and the term Computerized Accounting was born.

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Accounts Payable

What is sundry creditors on debit and credit side?

middle

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Business Accounting and Bookkeeping
Accounts Payable
Accounts Receivable

What is an effective system for managing accounts payable and receivable and a monthly operating budget?

AnswerI use MYOB booking system. (Mind your own business.) It can be purchased online or any good computer store.

Another good accounting software system is quickbooks or Peachtree. These are the two accounting software packages that most businesses uses.

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Math and Arithmetic
Accounts Payable
Budgeting and Forecasting

What is 2 cubed?

8

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Business Accounting and Bookkeeping
Accounts Payable
Financial Statements

How do you prepare a balance sheet in accounting?

A basic balance sheet is formatted beginning with Assets (current first then non-current) Liabilities (Current first then long-term) and Owner (shareholders) Equity. The account amounts are taken from the General Ledger after all temporary accounts are closed at the end of the fiscal year. Temporary accounts are Expenses and Revenue accounts which are closed into income summary and then finally retained earnings (or Statement of Retained Earnings which is an O.E. account)

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Business Accounting and Bookkeeping
Accounts Payable
Accounts Receivable

What is difference between advanced accounting and cost accounting?

ADVANCED ACCOUNTING covers accounting operations, patterns, merger of public holding companies, foreign currency operations, changing financial statement ...

Cost accounting:

A type of accounting process that aims to capture a company's costs of production by assessing the input costs of each step of production as well as fixed costs such as depreciation of capital equipment. Cost accounting will first measure and record these costs individually, then compare input results to output or actual results to aid company management in measuring financial performance.

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Banking
Accounts Payable

What is meant by clearing of cheques?

If you take a cheque to your bank to pay it in, the bank will credit your account with the amount, but you will not be able to withdraw this amount until the bank has processed the cheque internally and received the money from the bank issuing the cheque. When they have done this the money is 'really' in you account and you can take it out - the cheque has cleared.

This practice was needed (and reasonable) when cheques had to be processed between banks manually and protected the bank from the effects of bad cheques. However modern banking means that the clearing is electronic and yet the banks still keep the cleared funds for the same amount of time they always did (a week) - they use these uncleared funds themselves and it is wrong!

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Business Accounting and Bookkeeping
Accounts Payable
Accounts Receivable

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.

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