Accounts Payable
What are the two assertions that are most relevant to AP?
Completeness and Cutoff
What are the 3 most common types of debt?
Short-term Debt, Long-term Debt, Line/Letter of Credit
What are two common pieces of documentation that are used when performing contribution & Distribution testing?
General Ledger and bank statements
Where does AP fall on the Balance Sheet
Current liabilities
What are the 3 assertions that are most relevant to debt?
Completeness; Rights/Obligations; Accuracy/Classification/Presentation
What is the first item that should be addressed once a trial balance has been imported and coded correctly?
ensure the PY retained earnings roll to CY properly
What are the main documents we need for AP?
Invoices, purchase orders, and AP aging
What is the footnote table called that summarizes long-term debt over the next 5 years and beyond?
Future Maturities Schedule or Maturities Schedule or Schedule of Debt Maturities
What are three common components that can be found in most equity rollforwards?
Net Income (Loss), Contributions, Distributions
Who am I? I record money owed to suppliers but not yet paid
AP
What is a debt covenant?
Rules/covenants set by lenders to protect themselves (by ensuring borrowers remain financially stable)
Which two financial statement’s relate to equity?
Income statement (Net Income), Statement of Partners Capital (roll forward of equity)
If a company has a LOC, but hasn't borrowed anything or has a $0 balance, does it affect the FS? Why or why not?
Yes it does - because even unused LOCs must be disclosed in the footnotes (but NOT on the BS)
On 1/1/2023, Company “A” had 1,500,000 in beginning equity. For the years ended December 31, 2024 and 2023, Company A had Distributions of 350,000, and 400,000, respectively. Contributions for 2024 consisted of 500,000. There were no contributions in 2023. Net income for the years ended 2024 and 2023 were 1,100,000 and 900,000, respectively. What was Company A’s ending equity as of December 31, 2024?
$3,250,000 ending equity balance as of December 31, 2024)