The AP ledger does not specifically require a subsidiary ledger. However, it is recommended for those who want to keep a general ledger organized. This can also help with keeping transactions from getting confused with one another.
A subsidiary ledger is used to contain detailed information regarding transactions that are listed in a summary on a general ledger. This is often used for a high volume account that has multiple transactions and information that is not necessarily needed by a general accountant. The accountant can access the basic information needed for his role, while a financial analyst could use the subsidiary ledger to explore the transactions in greater detail.Learn More
The figures found in the statement of cash flows are pulled directly from the changes in balance sheet accounts throughout the year for a company, explains John A. Tracy from the "Accounting Workbook For Dummies." The increases and decreases in balance sheet accounts are the foundation for preparing a statement of cash flows because they drive the amounts shown in the statement.Full Answer >
On a business balance sheet, accounts receivable are considered assets. Accounts receivable represent what is owed to a business that supplies goods and services to other businesses without payment upfront.Full Answer >
Industry standards for financial ratios include price/earnings, liquidity, asset management, debt and profitability or market ratios. Financial ratios are used to compare one company to another company or to an entire industry in order to measure performance, notes Cornell University Management Library.Full Answer >
Bookkeeping involves recording basic accounting transactions such as recording invoices from suppliers, paying suppliers, processing payroll and recording cash received from customers. Bookkeeping is a subset of accounting. Accounting is usually more involved and includes activities such as creating financial statements, creating budgets and compiling tax returns.Full Answer >