Essay Accounts Payable And A Company 's Balance Sheet

Essay Accounts Payable And A Company 's Balance Sheet

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Accounts Payable is money owed by a business to its suppliers shown as a liability on a company’s balance sheet. It’s distinct from notes payable liabilities, which are debts created by formal legal instrument documents. The accounts payable is important to the company because it involves all of the company’s payments outside the office besides payroll. It’s the way the office handles all of the money owed. The accounts payable payments may be carried out by a department in a larger corporation, by the staff in a medium-sized office, and by a book keeper in a smaller office setting. The system is designed to record a sub-ledger at the time an invoice is vouched for payment. Vouchered or vouched is an invoice that’s approved for payment and is to be recorded in the general ledger. General Ledger, or the AP sub ledger, allows the account to have a status of outstanding or open. Payable accounts are categorized as trade payable for the purchase pf physical goods that are recorded in inventory. Expense payables are payable for purchase of goods or services. Examples of expense payable ...

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