accounts payable

Tag: accounts payable

Time Saving Tip for Filing Vendor Invoices

See Also: Accounts Payable Turnover Accounts Receivable Accounts Receivable Turnover Chart of Accounts (COA) Problems in Chart of Accounts Design Current Practice How do you file your paid vendor invoices? Alphabetically? Who taught you to do it that way? Have you ever wondered why? How often do you go back and research a paid accounts

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Quick Ratio Analysis Benchmark Example

Quick Ratio Analysis Benchmark Example Quick ratio calculation is a useful skill for any business that may face cash flow issues. Furthermore, quick assets include those current assets that presumably can be quickly converted to cash at close to their book values. It normally includes cash, marketable securities, and some accounts receivables. Current liabilities represent

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Operating Cycle Analysis

See Also: Operating Cycle Definition days inventory outstanding Cash Cycle day sales outstanding days payable outstanding Financial Ratios Operating Cycle Formula Complete operating cycle analysis calculations simply with the following formula: Operating cycle = DIO + DSO – DPO Where DIO represents days inventory outstanding DSO represents day sales outstanding DPO represents days payable outstanding

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Debit Memorandum (memo)

See Also: Credit Memorandum (memo) Account Reconciliation Credit Sales Chart of Accounts (COA) Accounting Principles Account Reconcilement Definition Debit Memorandum (Memo) Definition A debit memorandum or memo is a form or document, sometimes called a debit memo invoice, that informs a buyer that the seller is debiting or increasing its amount in the accounts receivable,

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Days Payable Outstanding

See Also: Accounts Payable Accounts Payable Turnover Days Sales Outstanding (DSO) Days Inventory Outstanding (DIO) How to Create Dynamic Cash Flow Projections Days Payable Outstanding Definition Days payable outstanding (DPO), defined also as days purchase outstanding, indicates how many days on average a company pay off its accounts payables during an accounting period. A useful tool

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Current Liabilities

See Also: Balance Sheet Current Assets Fixed Assets Fixed Assets – NonCurrent Assets Current Liabilities Current liabilities is a category of liabilities on the balance sheet. The category also consists of debts and other financial obligations expected to be paid or settled within one year or within one normal operating cycle of the business (whichever

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Contingent Liability

See Also: Current Liabilities Balance Sheet Accounting Principles Accounting Concepts Subsequent Events Contingent Liability Definition A contingent liability, defined is an obligation that a company might or might not have to recognize. This is because the event(s) are uncertain. It is also necessary for future events to occur to determine whether or not the obligation

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Credit Memorandum Definition

See Also: Debit Memorandum (memo) Credit Sales Account Reconciliation Chart of Accounts (COA) Transaction Exposure General Ledger Reconciliation and Analysis Debt Compliance 101: Keeping Your Banker Happy Credit Memorandum Definition The credit memorandum definition or memo is a form or document, sometimes called a credit memo invoice, that informs a buyer that the seller will be

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