This is the amount of money that is owed for the purchase of either goods or services from any organization or any entity at a particular date. This is a kind of current liabilities. This term is showed in the Balance Sheet as part of the Total Liability of the organization. Importance of Account Payable:
Accounts Payable is one of the major liabilities for an organization. An organization must clearly and precisely identify the amount of Accounts Payable to compare the liability of the firm with the amount of assets it owns and also to compare its ability to pay that Account payable from the amount of cash or other assets it possesses. The amount of Accounts Payable is also used to identify different financial ratios that indicate the overall position of the firm compared with other years and with even other firms in its industry.
This is the amount of money that a firm or an organization gets to other firms or parties for any sales of goods and services provided on account. Accounts Receivable is an asset to that organization and this is presented in the Balance Sheet as part of the Total Assets of that firm. This is one kind of current assets. This is also known as Debtors too. Importance of Accounts Receivable:
Accounts Receivable is one of the major Assets for an organization. The organization must identify exact amount of money that the firm gets to other firms to know about the exact position of the firm. Identifying Accounts Receivable helps to compare overall position of the firm and compare the performance with performance of other years and with other firms in the same industry.
Avg Annual Current Maturities:
Average Annual current Maturities refers to the amount of money actually paid during the upcoming year on the principle amount of all outstanding long term debt. Current maturities refer to the time it takes before a debt needs to be paid back. Importance of Avg Annual Current Maturities: