Accounts Payable

Anything that takes money out of your pocket is considered a liability.

No, Unearned Revenue is revenue that the person/company has received from the customer but has not yet fulfilled the commitment that they are obligated to fulfill. A better example.

Let's say you are a computer company and your customer orders a $1500 computer. The customer pays you for the computer but you haven't shipped the computer to the customer yet. The $1500 you received from the customer is unearned revenue. Unearned revenue is recorded as a liability until the obligation owed by your company has been fulfilled. This is because, even though your company has received the money for the order they have not fulfilled it and are liable to the customer to either fulfill the order as promised or if unable to do that, refund the customers money.

The entries above would be something like....

Cash Debit $1500

Unearned Revenue Credit $1500

Once the order is fulfilled and the customer has been shipped the computer and adjusting entry would then be made to reflect that the revenue has been earned something like:

Unearned Revenue Debit $1500

Revenue Credit $1500

This basically just moves the amount from the unearned revenue account to show that it has been earned. Cash had already been received so no adjusting entries would be required to the cash account.

Revenues earned but not yet billed would be an account receivable. If the customer gets the computer and hasn't paid for it yet, you've earned the revenue that would come from the computer but you haven't received the money yet. At this point the customer owes you (the company) and accounts receivable is debited with the amount owed.

Decrease Cash (credit) and Decrease Account Payable (debit).

This is if you're paying cash which of course is the common way to pay an account payable. An account payable is what you owe another person or company, by paying even a portion of the account it will decrease your liability (what you owe) as well as decreasing your amount of cash on hand.

A/P increase on a trial balance means what

You should not pay a packing slip that shows a shortage unless it has been resolved or agreed upon with the supplier. It's important to verify the shortage with your inventory and communicate with the supplier to understand the reason for the discrepancy. If the shortage is legitimate and acknowledged, you may need to adjust the payment accordingly. Always keep documentation of any agreements or communications regarding the issue.

As accounts payable has a credit balance as normal balance so it has credit balance until not paid but it may have debit balance as well in case when payment is made for more than actual accounts payable which create negative balance or debit balance.

Current ratio = current assets / current liability

Current ratio = 10000 / 2000
current ratio = 500%

There is always two entries at minimum. Remember the accounting equation...

Assets = Liabilities + Owners Equity (Stockholders Equity)

For every action that must be an equal and opposite reaction. Simply put for every Debit there must be an equal Credit. So there has to be at least two entries, one debit and one credit.

TheDiamondMinecart's Minecraft account is DanTDM

Debit cash
Credit accounts receivable / bank etc

False, Accounts payable represents the amount payable to creditors rather debtors which is called accounts receivable.

Yes

Because the entry deals with both cash and bank

It means there is an outstanding debt for some goods or services you have received.

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.

by the amount owed to each vendor

If the packing slip shows a shortage, the Accounts Payable department should send it back.

The Accounts Payable clerk is responsible for providing payment on an account.

A contra account balance is a debit balance account. It is a general ledger account that has a balance that is an exact opposite of a normal balance. Contra accounts are generally used to report the gross and the net amount of an organization.

The area of accounting that describes the application of substance over form is Financial non-current asset.

Any account on the balance sheet is a permanent account - 'Cash', 'Accounts Receivable', 'Accounts Payable'.

Income and expense accounts are temporary accounts because they are closed at the end of an accounting period. Examples are: 'Service Revenue', 'Office Expense', and, my personal favourite, 'Meetings and Entertainment Expense'.

Currents assets are assets that can quickly be turned into cash, therefore account receivable is because debtors can pay off their debt or the company can factor it and Property and equipment are difficult to turn into cash as you first have to find the suitable buyer and reconsider for sales

Payable on Death was created in 2003-07.