When a business purchases some asset or incurs expenses and agrees to make payment after some time, there is a need to record liability as a business has already obtained economic benefit. To record a liability, we need to pass an entry in the accounting system called a journal entry. An increase in liability is …
How Do You Record a Journal Entry for Accounts Payable? (Explained) Read More »
Accounts payable ledger contains a list of the company’s vendors with their balances payable. The ending balance of accounts payable is compared with the payable balance in the general ledger to ensure the accuracy of the payable record. Accounts payable management is essential for the successful run of a business. This helps to ensure that …
What is an Accounts Payable Ledger? And How Does It Work? Read More »
The process of recording invoices in the accounts payable ledger starts when you receive an invoice from the supplier/service provider. Once an invoice is received, there is a specific recording process that helps maintain the accuracy and completion of the financial records. The accurately designed recording process is considered to have strong internal controls, enhanced …
What Are the Steps of Processing Invoices in Accounts Payable? Read More »
The 1099 form is used to report the taxpayer’s non-employment income throughout the fiscal year. This means that any income-driven source of income other than the salary or formal employment is called a non-employment income. There are many different types of 1099 forms because there are many different categories of non-employment income that individuals can …
1099 Vendors: What Vendors Need to Send 1099 to? Read More »
Basis points (BPS) is the most common unit of measurement for interest rates and other percentages. The term is used most often in the context of financial markets, but the concept can be applied to any system of measuring. The term is a contraction of “basis point”, sometimes it is also used as “bips” and …
What are Basis Points? And How to Calculate Basis Points Read More »
Accountants need to keep track of a lot of documents during the course of the financial year. The accounting cycle begins with the transaction and the invoice and then it passes through multiple books and ledgers such as the general ledger, sales daybook, trial balance and finally it ends up in the income statement and …
What is a 10-Column Worksheet in Accounting? (Explanation, and Example) Read More »
Organizations that have an accounting department offer bookkeeping and related assistance. Receivable and payable transactions, selling prices, salaries and benefits, capital equipment, and other financial elements are recorded in the department’s system. A team of accountants reviews the documents of each team to monitor the company’s financial performance and any alterations required to operate the …
What is the Responsibility of an Accounting Department? Read More »
Service departments incur expenditures passed on to the operating departments, as those services aid the operating departments. Management, administrations, cafes, laundry rooms, and processing are just a few of the service departments that exist. At the same moment, service departments help various manufacturing units, and accounting professionals must distribute and explain all the expenditures associated …
What Are the Three Methods of Cost Allocation? (Explain and Example) Read More »
Overview Businesses around the world sell goods to customers on credit in order to boost sales. This is done to allow customers a more flexible payment plan. When a business sells its goods or services to a customer on credit, that is, when the customer is yet to pay for these goods and services, this …
How Do You Record Journal Entry for Accounts Receivable? (Explained) Read More »
Definition Accounts Payables are short-term liabilities that a business owes to its creditors including suppliers and vendors. They are a part of the current liabilities section under Liabilities on the balance sheet. The accounts payable turnover formula is a measure of the short-term liquidity of a company. It measures the ability of the company to …
Account Payable Turnover Formula (Explain and Example) Read More »
