What Are Accounts Payable (AP)? Accounts payable (AP), or “payables,” refer to a company’s short-term obligations owed to its creditors or suppliers, which have not yet been paid. Payables appear on a company’s balance sheet as a current liability. Another, less common usage of “AP,” refers to the business department or division that is responsible
What Is an Accounts Payable Subsidiary Ledger? An accounts payable subsidiary ledger is an accounting ledger that shows the transaction history and amounts owed to each supplier and vendor. An accounts payable (AP) is essentially an extension of credit from a supplier that gives a business (the buyer in the transaction) time to pay for the
What Are Accounts Receivable (AR)? Accounts receivable (AR) are the balance of money due to a firm for goods or services delivered or used but not yet paid for by customers. Accounts receivable are listed on the balance sheet as a current asset. Any amount of money owed by customers for purchases made on credit
What Is an Accordion Feature? An accordion feature is an option that a company can buy that gives it the right to increase its line of credit with a lender. Companies typically purchase an accordion feature in anticipation of the need for more working capital for possible expansion opportunities. If such opportunities do not materialize
What Is Accountability? Accountability is an acceptance of responsibility for honest and ethical conduct towards others. In the corporate world, a company’s accountability extends to its shareholders, employees, and the wider community in which it operates. In a wider sense, accountability implies a willingness to be judged on performance. Key Takeaways Accountability is the acceptance
What Is an Accountable Plan? An accountable plan is a plan that follows the Internal Revenue Service (IRS) regulations for reimbursing workers for business expenses in which reimbursement is not counted as income. This means that reimbursements are not subject to withholding taxes or W-2 reporting. However, these expenses must be business-related to fall under
What is Account Aggregation? Account aggregation is a process in which data from many—or all—of an individual’s or household’s financial accounts are collected in one place. It is also referred to as financial data aggregation. For example, an online banking service may provide a home page on which account holders can see information from all
What Is an Accountant? The term accountant refers to a professional who performs accounting functions such as account analysis, auditing, or financial statement analysis. Accountants work with accounting firms or internal account departments with large companies. They may also set up their own, individual practices. After meeting state-specific educational and testing requirements, these professionals are
What Is the Accountants’ Index? The Accountants’ Index is a collection of articles, books, and other materials of interest to accounting professionals. The Index is released by the American Institute of Certified Public Accountants (AICPA), which publishes new material on a quarterly and annual basis. The purpose of the Accountants’ Index is to keep accounting
What Is an Accountant’s Opinion? An accountant’s opinion is a statement written by an independent certified accountant expressing its view regarding the quality of information contained in a set of financial reports. For audits in the United States, the opinion may be unqualified, qualified or adverse. Judgments vary and are based on how much a
