Read this tip to make your life smarter, better, faster and wiser. LifeTips is the place to go when you need to know about Bookkeeping Jobs and other Accounting Jobs topics.
Accounts payable are defined as the transactions arising from a company purchasing goods or services on account. The goods and services are purchased based on a promise for future payment. This purchase on account creates a liability known as an account payable. An accounts payable is considered a current liability on the balance sheet and/or financial statements. It is considered a current liability due to its quickness in being converted into cash. An accounts payable normally has a credit balance.
Guru Spotlight |
Susan Sayour |