Examples of accounts payable
Credit cards send us account statements every month, with which we obtain control over the management of our money, it tells us what transactions have been made in the account, the deposits we receive and the way in which we invest or allocate our resources.
Remittances, that is, the money that our immigrants send to their families, are considered in this account. As well as in-kind donations made by institutions to residents abroad.
If your account statement indicates that your expenses exceed your income, it means that you are consuming more than you can pay and, therefore, you are generating a debt. At the national level, “a current account deficit is a sign that the country spends more than it produces “2. If the result is negative, then we can say that we have a deficit; if it is positive, we call it a surplus.
When all components of the balance of payments are included, the total must add up to zero, with no possibility of a surplus or deficit. For example, if a country is importing more than it exports, its trade balance (exports minus imports) will be in deficit, but the lack of funds in this account will be offset by other means, such as funds obtained through foreign investment, diminishing central bank reserves, or borrowing from other countries.
In a fixed exchange rate system, the central bank accommodates these flows by purchasing any inflow of funds into the country or through the provision of foreign currency funds in the foreign exchange markets, so as to match any outflow of capital abroad, thus preventing fund flows from affecting the exchange rate between the country’s currency and other currencies. Thus, the annual net change in the central bank’s foreign exchange reserves is sometimes referred to as the balance of payments surplus or deficit. There are alternatives to fixed exchange rate systems, such as a floating management regime where certain changes in exchange rates are allowed, or at the other extreme a pure floating exchange rate system (also known as a purely flexible exchange rate). With a pure floating exchange rate system, the central bank has no need to intervene to protect or devalue its currency, allowing its rate to be set by the market, and the central bank’s foreign exchange reserves are not altered.
Statement of cash flow
Accounts payable (AP) represents the amount due on a specific date for the purchase of goods or services. Accounts payable are recorded at the time an invoice is approved for payment and are recorded in the General Ledger (or in the AP subsidiary ledger) as a liability, outstanding or open because it has not been settled. Accounts payable are generally classified as Trade Accounts Payable (i.e., payable for the purchase of physical goods that are recorded as Inventory), and Sundry Accounts Payable (i.e., payable for the purchase of goods and services that are invoiced). Some common examples of expense payables are advertising, travel, entertainment, office supplies, and services. FMs are a form of credit that suppliers provide to their customers by allowing them to pay for a product or service after it has been received.
Accounts receivable represent receivables that are expected to be received in cash. Accounts receivable represent amounts owed by entities to a business for the sale of products and services. In most business entities, accounts receivable are normally generated by issuing an invoice and sending it to the customer by mail or electronically, and the customer, in turn, must settle it within a set period of time called credit terms or payment terms.
General accounting plan
The resources contemplated in the Budget administered by the government come from two sources: revenues, which include taxes paid by the population, and financial sources, which are funds obtained through loans, placement of bonds, securities, decrease in financial assets and sale of shares, among others.
Bonds are another type of debt commitment contracted by the government to obtain resources. By placing bonds, the government obtains resources through the issuance of a security in favor of the buyer of the bond, who is a kind of borrower.