Month: February 2021

When confirming accounts payable, your company’s auditors must take a sample of the accounts payable. These majorly represent your business’s purchasing or borrowing activities. Furthermore, special emphasis must be given to accounts payable representing larger transactions. Once the sample invoices are reviewed, each of them must be confirmed and verified. You must also review and… Continue reading Accounts Payable Journal Entry Definition & Examples

Accrued interest agreements have fees calculated based on the current account balance and rate. It reduces the expenses or cash outflow of the company, but it could not be considered the revenues under the accounting principle. For example, if you have a loan with a 6% simple interest rate, you would pay back the original… Continue reading Accounting for Purchase Discounts Entry, Example, and More