Asked by Charlease Jordan on Jul 03, 2024
Verified
Briefly explain why it is important for a company to track accounts payable and how accounts payable reports can assist with tracking accounts payable.
Accounts Payable
Money owed by a company to its creditors for goods or services that have been delivered or used but not yet paid for.
Accounts Payable Reports
Documents that detail the amounts owed by a company to its suppliers or creditors for goods and services received.
Tracking Accounts
Monitoring the activity within financial accounts to ensure accuracy, detect fraud, or manage finances.
- Understand the importance of tracking accounts payable in financial management and the role of accounts payable reports.
Verified Answer
ZK
Zybrea KnightJul 05, 2024
Final Answer :
In order to make certain that a company pays its bills when due to maintain favorable credit,it is important a company track accounts payable. Accounts Payable reports provide information to track amounts owed vendors. An Accounts Payable Aging report summarizes accounts payable balances by the age of the account. This report helps to track how much is owed vendors and when amounts are due,including the age of past due bills.
Learning Objectives
- Understand the importance of tracking accounts payable in financial management and the role of accounts payable reports.