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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
It means that whatever you have ordered will not be posted until payment has been received and you have enough in your account to cover the cost.
What stockholder equity accounts follow the same debit and credit rules as liabilities?
Dividens retained earning and capital stock
What is created at the end of the year in the accounts payable department?
At Year End usually there is a balance sheet item called "Trade Creditors" or something similar, this should be documented with a complete list of outstanding invoices with payment due to you.
What if a company cannot convert inventory into cash within one year - is it still a current asset?
yes.
Is advertising expense debit or credit?
As the item says in itself it is an expense and therefore it should be debited.It is one of the rules of the accounts to debit all expenses and losses.
Why is Accounts payable considered a debit on trial balance?
It is NOT, accounts payable is never considered a debit on any financial statement. Accounts Payable is a liability that a company owes and therefore must maintain a "credit" balance.
Cash account Dr
Bank account Cr
How do we delete the payment voucher if it has been entered twice by mistake?
By decreasing the amount by same.
Would you capitalize accounts payable administrator?
If you are talking about a particular person who has that exact title, then it is correct to capitalize Accounts Payable Administrator.
Trial Balance
What is the difference between total current assets and total current liabilities is?
the difference between total current assets and total liability is the working capital. It goes with a formula 'current asset -current liability =working capital '
Is service performed a credit or debit in accounting?
Depend on who perform the services. 1.if it is do by the business is debt becos he will be paid 4 it and money comes. 2.credit if the pays other person 4 the service
Is the adjusted trial balance a financial statement?
In and of itself, generally no. An adjusted trial balance is merely a statement that is used at the end of the accounting period to adjust accounts such as expenses and income and to insure that all adjusting entries and accounts balance before preparing the post closing trial balance and finally the financial statements such as Balance Sheet, Statement of Retained Earnings, and Statement of Owners Equity.
Is revaluation account a real account or nominal account?
When a company (or any legal entity) is of the opinion that the value of an asset has appreciated (or) depreciated much than the recorded historical value, revaluation of asset is undertaken. This necessitates us to create an account known as "revaluation A/c". It is understood that, the outcome of revaluation may be a gain (or) loss. As per Golden rule of Accounting, revaluation a/c is a nominal a/c since the a/c measures the gain (or) loss of the asset.
