Accounts Payable Exam Latest Update 100% Correct

Accounts Payable Exam Latest Update 100% Correct Assets Resources owned by a company usually recorded in the ledger at historical cost. B-Notice A notification sent by a business entity to a vendor/payee that the taxpayer identification number provided by them is incorrect, thus subjecting the vendor/payee to possible backup withholding requirements. Backup Withholding Under certain conditions, the business entity is required to withhold part of a payment to a vendor subject to backup withholding. The amount withheld is remitted to the Internal Revenue Service. Backup withholding is usually required when a payee has failed to give the proper taxpayer identification number to the business entity. Balance Sheet A financial statement that lists the assets of the reporting entity and claims against those assets. The difference between categories is known as Owners' Equity. Benchmarking The process of establishing a standard of performance. Bill of Lading Documents that typically accompany a shipment transferring custody of the goods from the supplier to the transportation company. Blanket Purchase Order A large purchase order covering multiple purchases over a stated period of time. Business Continuity The ability of an organization to provide service and support for its customers and to maintain its viability before, during, and after a business continuity event. Account Classification Business transactions that are summarized by groups/categories, i.e., assets, liabilities, revenues and expenses. Accounting Period A period of time covered by an Income Statement or Statement of Changes in Financial Position. It can be any length of time that is measured, but usually accounting periods are months, quarters and years. A fiscal year is any consecutive 12-month period that a business chooses to adopt as its calendar year. Accounts Payable Accounts Payable is a strategic, value added accounting function that performs the primary non-payroll disbursement functions in a organization Accounts Receivable Amounts due to the reporting company from customers. Accounts receivable is considered a current asset. Accrual Accounting Accrual accounting attempts to match expenses with revenues for a particular reporting period. Accrual Income The difference between revenues and expenses identified during specific periods of time. Revenue is recognized during the period it is earned. Correspondingly, expenses are matched to the revenue they help produce. ACH Transactions A method for paying a vendor whereby a firm deposits funds into the vendors bank account.