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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
Is paid up capital a debit or a credit account?
aid up capital is the amount invested by owners towards business and it is the liability of business to pay back so it is liability of business and as all liability accounts it has also credit balance.
What Are objective of learning financial managements?
Objectives of Financial Management
The financial management is generally concerned with procurement, allocation and control of financial resources of a concern. The objectives can be-
To ensure regular and adequate supply of funds to the concern.
To ensure adequate returns to the shareholders which will depend upon the earning capacity, market price of the share, expectations of the shareholders.
To ensure optimum funds utilization. Once the funds are procured, they should be utilized in maximum possible way at least cost.
To ensure safety on investment, i.e, funds should be invested in safe ventures so that adequate rate of return can be achieved.
To plan a sound capital structure-There should be sound and fair composition of capital so that a balance is maintained between debt and equity capital.
What is the two methods of preparing trial balance?
A trial balance may be prepared according to either of the following two methods:
Total method:
If the total of debit sides of all accounts in the ledger is placed in one column of the list and similarly total of credit sides of all the accounts in the ledger is placed in another column of the list then list of total will be known to have been prepared with the total methods.
Balances method:
According to this system a trial balance is prepared on the basis of balances of accounts. It is based on the mathematical maxim that if equals are taken away from equals, results are equal. This method is simple and requires less work.
What are credit terms of net 30 eoap?
End of accumulation period of net 30 means you will be paid in 30 days. Many businesses use net 30 for payment terms.
Accounting entries for the purchase of extension sockets?
[Debit] Extension sockets expense
[Credit] Cash
Why may a control account carries both debit and credit balances?
A control account summarizes a set of subsidiary accounts. For example, Accounts receivable may have a control account, representing total Accounts receivable, and also may have a set of subsidiary accounts, representing the amount of Accounts receivable owed by each customer/debtor. The total of all subsidiary accounts must equal the balance of the control account.
Control accounts will have debit or credit balances depending on the nature of those accounts. Control accounts for assets, such as Accounts receivable or Fixed assets, will have native debit balances. Control accounts for liabilities, such as Accounts payable, will have native credit balances.
Is wages current liabilitys or non current liabilitys?
If wages already paid then it is current expense, if wages are payable within current fiscal year then it is current liabilities, if wages are payable in morethan one fiscal year that the amount payable in current fiscal year is current liability and the remaining amount will be treated as long term liability.
What is the journal entry for collections on account?
Collections on account refer to money collected from customers who have already received goods/services on credit.
Hence, the double entry is:
Dr Cash
Cr Accounts receivable
When an interest-bearing note matures what is the balance in the notes payable account?
The principal or maturity value. The premium or discount should be fully amortized down to zero.
Is debit credit note issue for adjusting account balance if a supplier and customer is same?
Yes, a debit or credit note can be issued to adjust account balances between a supplier and customer when they are the same entity. A debit note is typically issued by the buyer to the seller, indicating a reduction in the amount owed due to returns or discrepancies, while a credit note is issued by the seller to the buyer to acknowledge the return or adjustment. This process helps maintain accurate financial records and balances for both parties involved.
Why is hierarchy of generally accepted accounting principles needed?
Accounting and financial reporting guidance is provided not only by the two major accounting standards-setting bodies, but also by the AICPA, the staffs of the accounting standards-setting bodies, and even professional literature. Because of the heavy workloads of the standards-setting bodies, they may not have issued guidance on a particular issue of concern to a practitioner. A hierarchy of generally accepted accounting principles allows a practitioner to look to the guidance of other bodies in the event the Board with jurisdiction has not issued a standard on a particular matter.
Where does Trade accounts payable go balance sheet or income statement?
Trade payables, or accounts payable, are categorised under Current Liabilities in the balance sheet.
Would a credit entry to the accounts receivable ledger account would make the balance increase?
No! Accounts receivables is treated as an asset element in the balance sheet, and crediting an asset means decrease in asset.
Is overdrawn balance debit or credit?
that would be debit, because a credit card has a certain amount you can use, HOWEVER; i believe you can overdraw on BOTH of them depending on your credit, and what bank you're useing. hope this helps.
HOW does a balance sheet tally?
Balance sheet tallies all of the assets, liabilities and capital accounts of a financial entity - could be a business enterprise or your own personal financial status. The balance sheet is formally known as the statement of financial position. It is a snapshot of the financial position of an economic entity on any given day. On a balance sheet the total of all assets are equal to the sum of all liabilities and capital. The accounting equation is Assets = Liabilities + Capital. It is a restatement of the algebraic equation Assets minus Liabilities equals Capital.
When do you create an accounts payable account?
When any company purchases supplies or materials on credit from vendors then accounts payable are created and it is shown in liability side of balance sheet. If goods are not purchased on credit then no accounts payable will be created. Accounts payable are created to fulfill the matching concept of accrual accounting system.
What is the bcg matrix of nokia?
The BCG matrix for the Nokia Corporation has been illustrated in a 4 by 4 grid that compares relative market shares to the market growth rate. The goal of Nokia is to move the company into the Star matrix, giving it a large share in the market.
What is difference between sundry debtors and sundry creditors?
Sundry Debtors are from whom we have to take money and to sundry creditors we owe money.
yes.
Is accrued taxes current liabilities?
Yes, accrued taxes are considered current liabilities. They represent taxes that a company owes but has not yet paid, typically due within one year. This classification reflects the obligation to settle these amounts in the near term, aligning with the definition of current liabilities on the balance sheet.
Does an increase in accounts payable on the satatement a positive effect on the cash flow?
Increase in accounts payable will increase the cash inflow because if the cash is paid instead of credit purchases company has to pay cash which reduces the cash but as purchases has made on credit and no cash has to be paid that's why it has positive impact on cash flow.
