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Questions and Answers
Where are items classified within the accounts payable recorded?
Where are items classified within the accounts payable recorded?
- As liabilities in a ledger (correct)
- As assets in a ledger
- As expenses in a ledger
- As equity in a ledger
How are wages and payroll processed in relation to accounts payable?
How are wages and payroll processed in relation to accounts payable?
- Wages are processed separately in the payroll system (correct)
- Wages are included in accounts payable
- Wages are recorded as assets in a ledger
- Wages are processed together with accounts payable
What expenses are generally included in accounts payable?
What expenses are generally included in accounts payable?
- Long-term debts and mortgage
- Travel expenses and raw materials (correct)
- Payroll and transportation
- Wages and payroll
What is the responsibility of accounting and finance teams regarding accounts payable?
What is the responsibility of accounting and finance teams regarding accounts payable?
Flashcards
Accounts Payable Recording
Accounts Payable Recording
Items classified within accounts payable are recorded as liabilities in a ledger.
Wages vs. Accounts Payable
Wages vs. Accounts Payable
Wages and payroll are processed separately from accounts payable, typically within their own payroll system.
Common Accounts Payable Expenses
Common Accounts Payable Expenses
Accounts payable generally includes travel expenses and raw materials.
Accounting Team's Role in AP
Accounting Team's Role in AP
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Study Notes
Accounts Payable Classification
- Items are classified within the accounts payable as current liabilities on the balance sheet.
Payroll Processing
- Wages and payroll are processed separately from accounts payable, with payroll expenses being recorded as a separate current liability.
- However, if payroll taxes or benefits are still owed to vendors, they may be recorded as part of accounts payable.
Accounts Payable Expenses
- Accounts payable generally includes expenses such as:
- Purchases of goods or services from suppliers
- Utilities
- Rent
- Insurance premiums
- Office supplies
Responsibility of Accounting and Finance Teams
- The accounting and finance teams are responsible for:
- Processing and paying invoices to suppliers
- Managing and maintaining accurate records of accounts payable
- Ensuring timely payment of invoices to avoid late fees and penalties
- Maintaining a good credit score by making payments on time
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