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.
Montana Balance Sheet Support Schedule (BASS) is a financial statement used by businesses to report the details of their accounts payable. It provides a comprehensive overview of the company's outstanding obligations to vendors, suppliers, and other creditors. The BASS helps stakeholders, such as investors, lenders, and management, understand the nature and extent of the company's liabilities. The Montana BASS contains crucial information related to accounts payable, which includes the following key components: 1. Accounts Payable: This section outlines the total amount owed to various creditors for goods or services received but not yet paid for. 2. Credit Terms: It includes details of the agreed-upon payment terms with each vendor, such as the payment due date, trade discounts, and any penalties for late payment. 3. Aging Analysis: The BASS provides an aging analysis of accounts payable, categorizing them based on their due dates. This analysis helps identify any overdue or outstanding payments, allowing management to take timely action. 4. Accruals: This section comprises any estimated or potential liabilities that have not yet been invoiced by the vendor. Accruals ensure that all expenses incurred but not yet invoiced are properly recorded. 5. Purchase Orders and Receipts: This component contains information about outstanding purchase orders and partial receipts, providing a more accurate representation of the company's accounts payable. In addition to the general Montana BASS, there may be specific types of support schedules tailored to different aspects of accounts payable management. These schedules assist in further analyzing and tracking specific liabilities. Some types of Montana BASS include: 1. Vendor Support Schedule: This schedule provides a breakdown of accounts payable by vendor, enabling businesses to evaluate their individual relationships and identify any potential risks or opportunities. 2. Expense Category Support Schedule: It segregates accounts payable based on expense categories, such as raw materials, utilities, or professional services. This breakdown helps businesses understand their spending patterns and identify cost-saving opportunities. 3. Payment Terms Support Schedule: This schedule lists accounts payable based on different payment terms, allowing companies to manage their cash flow effectively and negotiate better terms with suppliers. 4. Accrued Liabilities Support Schedule: It focuses on estimating and documenting any liabilities that have been incurred but not yet recorded as accounts payable. This schedule ensures that all expenses are properly accounted for. In conclusion, the Montana Balance Sheet Support Schedule pertaining to Accounts Payable provides a detailed and categorized overview of a company's outstanding obligations. By utilizing related support schedules, businesses can gain further insights into their accounts payable, enabling effective management and decision-making.
