1
What are accounts payable?
Amounts owed by the business on account which result from the purchase of goods and services.
What is a subsidiary ledger account?
They are accounts for keeping track of each individual account payables accounts
What is another term used for Accounts Payable
Creditor
In Xero, what is a supplier invoice referred to as?
A bill
Does a Purchase order result in an accounting entry in Xero?
No
What does EOM stand for?
End of month
What type of account is Accounts Payable?
Liability
True or False. You can convert a purchase order into a bill through Xero?
True
What do you use the Purchases Returns and Discounts account for in Xero?
To record any discounts given to suppliers or returns made by suppliers
The balance of the Accounts Payable Account has to match the total balance in the individual accounts payable accounts in the subsidiary ledger. True of False?
True
What does End of month mean?
The invoice is due to be paid at the end of the month.
What financial statement or report does Accounts Payable appear in?
Balance Sheet
Is Accounts Payable a current item or a non current item?
Its a current liability
After you have recorded a purchase return in Xero, what is the next step that you have to do?
You have to allocate it against the original invoice or provide a cash refund
What is the process called when you check your transactions in your records with that of a supplier statement?
Reconcile/Reconciliation
What is the Xero chart of account number for Accounts Payable?
800
What should you do if you are working as an Accounts Payable officer and you get a supplier invoice without an ABN?
Withhold 47% tax and send it to the ATO
What does an Aged Payable Detail report show?
Provides detailed data on outstanding bills and when they are due by.
What do you do if you get a supplier invoice and notice that the price on the invoice is different to that that was on the Purchase order?
Look at your policies and procedures, notify whom it refers you to and then contact the supplier to discuss.
What does credit terms mean in relation to Accounts Payable?
Credit terms mean when you have to pay invoices from suppliers by.
What is the accounting entry that occurs when you buy stock on credit (including GST)?
DR Purchases
DR GST Paid
CR Accounts Payable
To increase an Accounts Payable account, what type of entry is needed?
A credit entry as it is a liability
What is a remittance advice?
A remittance advice shows a payment that has been made with all details including date, amount, what invoices are being paid for.
What are the manual journal entries to record a payment the business makes to Accounts Payable?
Dr Accounts Payable, Cr Bank
If we have a $1310 invoice from a supplier and we are promised a 5% discount, what would be the amount of that discount?