Warranty is often given by companies selling certain products such as electronic items for e.g., cell phones, laptops etc. Similarly,…
As defined by IAS 37, a provision is a liability of uncertain timing or amount. To understand this definition, one…
To ensure the completeness of liabilities, auditors often perform a test called search for unrecorded liabilities. However, accountants preparing the…
Accrued liabilities represent an entity’s obligations related to expenses that have been incurred but not yet paid. But why are…
Accounts payable aging analysis is a useful analysis based on the accounts payable aging report. This aging report is a…
To minimize the credit risk, banks and other lenders often obtain some form of security in the form of collateral,…
Liquidity risk management is the process of managing funds and arranging additional funds or liquid assets if required, to meet…
At the time of processing payments, accounts payable functions often use a three way match control to ensure that only…
Accounts payable function is concerned with processing the payments of a company. Except for the payroll payments, almost all other…
Buying goods or services on credit is a common thing these days. If an entity purchases and obtains a good…