average payment period
As a result, an increasing accounts payable turnover ratio could be an indication that the company managing its debts and cash flow effectively. Investors can use the accounts payable turnover ratio to determine if a company has enough cash or revenu...
What are the types of transaction in accounting?
When employees are to be paid, the accountant enters the pay rates and hours worked of all employees into the payroll module of the accounting software. The module automatically creates a journal entry that debits the compensation and payroll tax exp...
A Beginner’s Guide to The Accounting Cycle
Next, each transaction is recorded in a journal, a listing of financial transactions in chronological order. The journal entries are then recorded in ledgers, which show increases and decreases in specific asset, liability, and owners’ equity account...