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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.
3,095 Questions
The area of accounting that describes the application of substance over form is Financial non-current asset.
Is notes payable a permanent account?
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
What is the accounting entry for revenue earned by the business?
it is usually a fee of around 1500 pounds to 2000 pounds.
Why do amount of vehicles appear in non-current assets and current assets?
Vehicle is a fixed asset so it should be shown in fixed asset list and not in current asset list.
What is accounts payable balance sheet?
Accounts payable on the balance sheet is the amount of money the company owes its vendors from invoices the company has received from them (and assuming the company agrees they owe the money)
What side of trial balance does 5 debentures go on?
In a trial balance, debentures are classified as a liability. Therefore, they are recorded on the credit side of the trial balance. This reflects the company's obligation to pay back the amount borrowed through the debentures.
What is the journal entry of accounts payable?
debit purchases
credit accounts payable
*For purchases (supplies, office materials, etc.) on account
Purchases xx
Accounts Payable xx
*During payment of purchases on account
Accounts Payable xx
Purchases xx
NOTE: Journal entries depends on the accounts involved, like: Taxes, discounts and other stuffs. ^^
When an interest-bearing note matures the balance in the Notes Payable account is?
The principal or maturity value. The premium or discount should be fully amortized down to zero.
Two people should sign a completed petty cash voucher who?
Two people should sign a completed petty cash voucher if they are removing funds from a mutually protected petty cash supply for which they are both in charge. This will enable both parties to be responsible for one another during the transaction.
How to maintain petty cash book?
Maintaining a petty cash book can be simple as long as a person makes sure to keep up on transactions regularly. Most petty cash books are maintained by listing receipts and their purchase purpose along with the date and a brief explanation.
Is Cash and balances with central banks current assets or non current assets?
Cash and balances are both current assets and shown in current section of balance sheet.
