An account payable turnover ratio helps to measure the time business takes to pay off the debt to the creditors. It helps the business to understand the pattern of the payments and how they fast are in making payments to the creditors. It’s a widely used liquidity...
Definition: Service rendered can be explained as a finishing off of service agreement that is furthered to the client as an indicator that the work has been completed, so that payment can be generated accordingly from the services receiver to provider. Service...
What is a Purchase Discount? Purchase Discount is referred to the discount that is availed by the buyer of the goods, as a result of settling a particular debt earlier than the actual settlement date. During the normal course of the business, it is highly likely that...
Meaning of Notes Payable Notes payable form the largest portion of the current liability section on the company’s financial statements. It represents the purchases that are unpaid by the enterprise. In the cash conversion cycle, companies match the payment dates with...
Introduction & Overview In the modern day and age, there have been notable innovations in the field of accounting and finance that has significantly increased the number of options they have, pertaining to financing. Where financing tends to be an increasingly...
Nature of account payable Accounts payable of a company or business represents all the balances that it expects to pay in the future. Another name used for accounts payable is creditors. Companies that purchase from suppliers who offer credit terms usually accumulate...
