explain short terms of Accounts Payable Accounts Receivable Accrued Expenses

Posted on 06-05-2016        By ADMIN

explain short terms of Accounts Payable Accounts Receivable Accrued Expenses

Accounts Payable
Amounts owed by the business for purchases made on credit. These amounts arepaid by the business after a time lag that is measured by Day PPs PayableOutstanding (DPO).

Accounts Receivable
Amounts due to the business from customers for merchandise or servicespurchased on credit. The business does not receive payment for these amountsimmediately, and the delay before payment is measured by Days Sales Outstanding(DSO).

Accrued Expenses
Expenses that the business has incurred for which it has not received, or willnot receive, an invoice, and that have not yet been paid.

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