A balance sheet is an accounting tool used to summarize the financial status of a business or other entity. It generally lists assets on one side and liabilities on the other, and both sides are always in balance. Assets and liabilities are divided into short- and long-term obligations including cash accounts such as checking, money market, or government securities. At any given time, assets must equal liabilities plus owners equity. An asset is anything the business owns that has monetary value. Liabilities are the claims of creditors against the assets of the business. A balance sheet is usually prepared each month, quarter of a year, annually, or upon sale of the business, in order to show the overall condition of the company.
Account payable means a debt payable by a person or company to a creditor, or an enterprise in the normal course of its business. Account payable is usually maintained in the form of a file or statement of account. Generally, when a bill is received from a supplier or creditor, it is added to the account payable and removed from it when the amount is paid. For example: bills obtained for goods or services received and not yet paid. The account payable of a household usually consists of ordinarily bills from the electric company, cable television, telephone company, or satellite dish service, newspaper subscription, and other such regular services. It is also known as payables, note payable, or trade payable.
Alaska Balance Sheet Support Schedule is a crucial financial statement that provides detailed information about the accounts payable of a company or organization. It enumerates the outstanding debts and liabilities owed to suppliers, vendors, and other creditors. The Accounts Payable section of the Alaska Balance Sheet Support Schedule encompasses a comprehensive record of all short-term obligations related to purchases of goods, services, or supplies on credit. It reflects the company's commitment to paying off its debts within a specified timeframe, usually within a year. This schedule can be further divided into different types based on the nature and terms of the accounts payable. Let's explore two significant types: 1. Trade accounts payable: These are the obligations arising from standard business transactions where goods or services are purchased on credit from suppliers or vendors. This category includes invoices, bills, or statements payable for raw materials, finished goods, utilities, employee compensation, marketing expenses, maintenance services, and more. The trade accounts payable section provides insight into the normal operating expenses and obligations a company incurs as part of its day-to-day operations. 2. Non-trade accounts payable: This category includes liabilities apart from trade-related obligations. It encompasses outstanding debts owed to non-trade creditors or entities such as tax authorities, insurance providers, landlords, lawyers, consultants, financial institutions, and other professional service providers. Non-trade accounts payable might include tax liabilities, rent payments, legal fees, interest payments, and various contractual obligations. This section helps in gauging the company's financial commitments beyond its core trading activities. The Alaska Balance Sheet Support Schedule regarding Accounts Payable is crucial for assessing a company's liquidity, financial health, and payment management practices. It allows stakeholders, investors, and creditors to evaluate the company's ability to meet its short-term obligations, track payment trends, manage cash flow effectively, and maintain good relationships with suppliers and vendors.
