Creditors, Accounting Basics

Assignment Help:

Creditors: this may be short or long-term lenders. Short-term creditors comprise suppliers of materials, services or goods. They are generally termed as trade creditors. Long-term creditors are those who contain lent money for a long period, generally in the form of secured loans. The major concern of the creditors is focused upon the credit worthiness of the firms and its capability to meet its financial obligations. Therefore they are concerned along with the liquidity of the firms, its productivity and financial soundness. Conversely, it can also be stated as creditors are interested mostly in information that deals with solvency, liquidity and productivity hence they could assess the financial standing of the firms.


Related Discussions:- Creditors

Assets, untangible assets

untangible assets

Explain about accounting period, Q. Explain about Accounting period? As...

Q. Explain about Accounting period? As those interested in the activities of business need timely information companies must prepare financial statements periodically. To organ

Explain the meaning of payroll deductions, Explain the meaning of Payroll D...

Explain the meaning of Payroll Deductions There are numerous deductions taken from an employee's earnings. These are deducted by employer before employee receives a check. D

Accounts receivable - ar, Money payable by customers (individuals or corpor...

Money payable by customers (individuals or corporations) to the other entity in exchange for goods or services that have been given or used, but not yet paid for. Receivables typic

Nature and purpose of closing entries, Closing Entries based accounting que...

Closing Entries based accounting question a)  Describe the nature of Closing Entries.  I.e. what is the purpose of closing entries?                     b)  For each of the f

Retained earnings account, Closing entries perhaps prepared directly from t...

Closing entries perhaps prepared directly from the work sheet. The first journal entry debits all items appearing in the Income Statement credit column as well as credits Income Su

For earnings management, For earnings management, is impairment of goodwill...

For earnings management, is impairment of goodwill easier to manipulate than impairment of PPE?

Replenishing the petty cash fund, Replenishing the Petty Cash Fund Debi...

Replenishing the Petty Cash Fund Debit every expense account, supplies, or drawing as needed. Credit to Cash. Petty Cash is only debited when fund is established or increased.

Analyzing how well the company is performing, Q. Analyzing how well the com...

Q. Analyzing how well the company is performing? The classified income statement illustrates important relationships that help in analyzing how well the company is performing.

Accounting changes - significant accounting policies, The Company changed i...

The Company changed its process of accounting for pre-opening costs. These changes had no cash impact and the pro forma amounts accessible in the consolidated statement of income r

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd