Understanding Accounts Payable AP With Examples and How to Record AP
It can be confusing to switch back and forth between accrual accounting and cash accounting, but it’s necessary to calculate your net cash flow. As an example, let’s say you have $250,000 in income and $40,000 in accounts payable. On your income statement for April, you’ll subtract the $40,000 from the $250,000, leaving you with … Read more