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.
The Colorado Balance Sheet Support Schedule regarding Accounts Payable is a financial statement that provides a detailed breakdown of an entity's outstanding obligations to suppliers and creditors. It serves as a comprehensive record of all the amounts owed by the organization, categorized as accounts payable, which arise from credit purchases of goods or services. The schedule is an essential component of the balance sheet, one of the core financial statements measuring the financial health of an enterprise. It reflects the organization's liabilities, including its short-term obligations to suppliers, vendors, and other business partners. The Colorado Balance Sheet Support Schedule regarding Accounts Payable encompasses various types of liabilities, each with its own set of keywords to describe them: 1. Trade Payables: These are the most common types of accounts payable, resulting from the purchase of goods or services on credit. Keywords associated with trade payables include outstanding invoices, vendor bills, credit purchases, payment terms, and trade creditors. 2. Accrued Expenses: These refer to costs incurred by the entity but not yet paid, such as salaries, rent, utilities, or taxes. Keywords associated with accrued expenses might include outstanding payroll, rent obligations, utility bills, tax liabilities, and employee benefits. 3. Deferred Revenue: This category includes advance payments received from customers for goods or services that are yet to be provided. Keywords linked to deferred revenue could include unearned income, customer deposits, prepayments, and advance receipts. 4. Notes Payable: These represent formal loan agreements with external parties, often with specific terms and conditions. Keywords tied to notes payable might include long-term debt, promissory notes, interest payments, loan agreements, and debt obligations. 5. Other Payables: This category encompasses miscellaneous liabilities not included in the above types, such as legal obligations or unpaid expenses. Keywords associated with other payables may include legal settlements, outstanding litigation, warranty claims, and contingent liabilities. It is important to discern that the specific names and classifications of balance sheet support schedules might differ across jurisdictions or accounting frameworks. However, the underlying purpose remains the same: to disclose and provide transparency on an entity's accounts payable, ensuring accurate representations of its financial position.
