If only one of these conditions are met, the company will not include it on the balance sheet. Whether you’re taking out a loan to purchase a new piece of equipment, or making purchases from vendors on credit — your business is accruing liabilities. For expenses governed by contracts, such as software or maintenance agreements, […]

Suppose a company purchases inventory from a foreign supplier and the payment is due in a different currency. The company must record the transaction at the exchange rate on the transaction date and recognize any exchange rate differences that arise by the payment date as Accounts Payable Management a foreign exchange gain or loss. Accounting […]