Asked by Geneiva Kaarto on Jun 10, 2024
Verified
How are the Accounts Payable and Accounts Receivable Aging reports similar and how are they different?
A) Similar: Both reports summarize account balances by the age of the account. Different: One report summarizes how much our company sold on account and one summarizes how much our company has purchased on credit this accounting period.
B) Similar: Both reports summarize account balances by the age of the account. Different: One report summarizes amounts we owe our customers and one summarizes amounts our vendors owe us.
C) Similar: Both reports summarize account balances by the age of the account. Different: One report summarizes amounts owed to us from customers and one summarizes amounts due to our vendors.
D) Similar: Both reports summarize account balances by the age of the account. Different: One report summarizes amounts we need to finance to pay our debts and one summarizes amounts we need to provide as financing to our customers to pay their debts when due.
Accounts Payable
Amounts owed by a business to its suppliers or vendors for goods and services received but not yet paid for.
Accounts Receivable
Money owed to a business by its clients or customers for goods or services delivered but not yet paid for.
Account Balances
The amounts of money held in financial accounts at a specific point in time, reflecting the net result of all completed transactions.
- Acquire knowledge on the procedure for generating financial reports through QuickBooks Online (QBO).
Verified Answer
FA
Faisal AlsaadJun 13, 2024
Final Answer :
C
Explanation :
Both the Accounts Payable and Accounts Receivable Aging reports summarize account balances by the age of the account. However, the Accounts Payable report summarizes amounts due to our vendors while the Accounts Receivable report summarizes amounts owed to us from customers. Therefore, the correct option is C.
Learning Objectives
- Acquire knowledge on the procedure for generating financial reports through QuickBooks Online (QBO).