Accounts Payable
are those bills that are due and payable when items are purchased on account.
Normally speaking inventory that has not yet been paid for will be classified
as an Account Payable.
Normal repairs, payments to vendors, inventory or anything
else that is to be paid quickly is recorded under this category.
Usually when a company receives an invoice it doesn’t pay
for it immediately. Some suppliers/vendors will provide for a company to pay
for products or services within 30, 60, or 90 days. Until such time as the
invoice is paid it is carried as an account payable.
Accounts Payable is recorded on the company’s Balance Sheet as a Current Liability. That is that the company expects to pay for this
item within one year.
Disclaimer
The opinions or advice listed in this blog or website should be used as a place to start only. It is not a substitute for the use of a professional.
Please be sure to consult your attorney and/or accountant with any specific questions.
There is no one right answer to any business question that will cover all circumstances. Please Visit McClendon Enterprises
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