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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
Can the payables be written off after one year?
Yes, payables can be written off after one year if they are deemed uncollectible or if the company has determined that the obligation is no longer valid. However, the specific policies for writing off payables may vary based on accounting standards and regulations. It's essential to ensure that proper documentation and justification are in place to support the write-off. Additionally, consult with an accounting professional to comply with applicable laws and financial reporting requirements.
Is Accounts Payable considered a debit on the Trial Balance?
No, it is a Credit because Accounts payable is a Liability account.
Is expense account a debit or credit account?
Expense account is a debit account.
So for example the expense is rent paid, so every year the rent expense increases and we record it in the debit side of the rent payable account and to complete the double entry, credit the same amount to the profit and loss account.
Follow this basic rule to know which side your looking for: DAXP (debit side items), LICS (credit side items)
D: drawings A:assets X:expenses P:purchases, L:liabilities I:income C:capital S:sales.
So DAXP items increase in the debit side while LICS items increase in the credit side.
How do you double entry when your debtor has paid your creditor for you?
credit the debtor and debit the creditor
Why is it necessary for accountants to assume that business entity will remain a going concern?
It is a basic assumption that the owners of the business would like to stay in the business. Hence Accountants prepare the books on the same premise.
How does current assets and current liabilities work together?
Current liabilities are the source of creating creating current assets. Current assets bring in cash to meet the current liability. Thus they represent the short term sources and short term uses.
Is short-term debt the same as current liabilities?
Essentially, yes.
Many times a company has Long-term debt, with a certain amount to be repaid within the year. On the company's balance sheet they will have the remaining amount of their Long-term debtincluded in Non-Current Liabilities, while in Current liabilities they will have the Current portion of long-term debt.
Basically, the balance sheet has a section for Current liabilities, which would include accounts with debts to be repaid in the short-term (generally within the year). Normally it is not listed as Short-term debt, but rather an account like Accounts payable or Bank loan, or as I stated earlier, Current portion of long-term debt.
Is accounts payables a part of an asset or a liability?
When company purchases supplies from vendors they are require to pay them at the same time but instead of paying them out immediately they got the time to pay in future so it is the liability of the company to pay them that;s why accounts payable is liability and not the asset.
Why is accounts payable aging report needed for an audit?
I think you mean an aged Accounts RECEIVABLE report.
If you are familiar with auditing, the auditor needs to perform a risk assessment and satisfy certain assertions with regard to accounts. One assertion for Accounts Receivable (A/R) is Valuation & Allocation, which basically asks the question, "Is the account valued correctly?"
The auditor must perform tests and gather audit evidence to satisfy this assertion, one procedure includes examining a company's aged A/R report, which list the company's customers that owe money to the company. The report states which balances have been owing for different lengths of time, and normally an estimate is made to determine what values of A/R is uncollectible.
If the company has not made an appropriate adjustment to account for these uncollectible amounts, normally the auditor will suggest that an entry is made to do so, or else the account is not valued correctly. If management refuses the entry, the auditor would have to decide how their audit opinion would be affected.
Is demand draft and bankers cheque the same?
no they r not same.
a demand draft means a bank orders other banks or its branches to pay money to a person whose name have written on draft.it has a long proses.but we can use telephonic or telegraphic transfer too to made this proses easy.
In the other hand ACCORDING TO ME bankers cheque r for loans which one bank borrow from other
What is the meaning of accounts payable account balance has increase on the trial balance?
account payable is also called Bils paybal
its show cr balance and
it is a liability for the business
Is a Decrease in Interest Receivable a credit or debit?
a decrease in a receivable is a decrease in an asset therefore its a credit.
Is salaries payable a long term liability?
No, Its not a long term liability, since it will be paid in the same month the expenes is booked or the next month
