Accounts payable explained

Accounts payable are bills due to suppliers for inventory items already purchased. To compete for your business, many suppliers will extend you credit and flexibility to pay for purchases 30 more days after you receive them.  You can use this interest-free credit to help fund your operations.  Most suppliers will offer their customers easy credit […]
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Long-lived assets

Long-lived assets are land, buildings, equipment, vehicles, and other property that you use to make money for your business.  These are purchased with the intention of owning them and using them for many years.  They are also referred to as Property, plant and equipment, or “PP&E.” Horse racing by Paolo Camera, on Flickr Business people […]
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Accounts receivable explained

Accounts receivable is money owed to you by your customers for merchandise purchased. It is a current asset reported on your balance sheet. Understanding accounts receivable Suppose you are a wholesaler who ships merchandise in truckloads to your customers.  You ship goods to customers’ loading docks, where workers can unload the trucks.  Here’s the problem: those […]
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