what is meant by "level of accounts payable"
This might either refer to the amount of accounts payable (unpaid bills), relative to total purchases over a period of time, or it may refer to the skill level required for an accounts-payable job, as in
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It seems like the phrase is being taken out of full context.
Account Word Problems like this I seem not to get the concept , please give me an exam as how to figure out this problem.
1. The liabilities of Acosta Corporation equal one-third of the total assets. And
stockholders equity is $160,000. What is the amount of the liabilities.
Assets = Liabilities + S Equity
? = ? + $160,000
2. The liabilities of the Cochran Company equal one-fifth of the total assets
The stockholders equity is $40,000. What is the amount of the liabilities?
Assets = Liabilities + S Equity
? = ? + $40,000
I have no exam to give you; we have no teachers of your subject on the Jiskha team.
The "level of accounts payable" refers to the amount of money that a company owes to its suppliers or creditors for goods or services that have been purchased on credit. It represents the outstanding balance of a company's short-term obligations that have not yet been paid off.
To determine the level of accounts payable, you need to follow these steps:
1. Access the financial statements: Obtain the company's balance sheet or financial statements, usually found in their annual report, quarterly report, or financial database.
2. Locate the "Accounts Payable" line item: Look for a specific section within the balance sheet called "Current Liabilities" or "Short-term Liabilities." Under this section, you will find the "Accounts Payable" line item.
3. Identify the balance: The amount mentioned under "Accounts Payable" represents the level of accounts payable. It shows the total amount that the company still owes to its suppliers for various purchases made on credit.
By regularly monitoring the level of accounts payable, companies and investors can assess the company's ability to meet its short-term obligations and manage its cash flows. High levels of accounts payable may indicate a potential liquidity risk, while low levels may suggest strong cash management practices.