Expense accounting is the accounting of business costs incurred to generate revenue. Salary expenses are only recorded in the companys income statement for the period they are incurring. It is normally customary to record trade bills at their face value and to accrue interest on the interest bearing notes, using a separate Interest Payable Account. These payables are required to recognize the salaries expenses in the companys financial statements at the end of the period. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Copyright 2023 . Although bills payable may arise from the same sources as trade accounts payable, they are evidenced by negotiable instruments and therefore should be reported separately. ","hasArticle":false,"_links":{"self":"https://dummies-api.dummies.com/v2/authors/9470"}}],"_links":{"self":"https://dummies-api.dummies.com/v2/books/"}},"collections":[],"articleAds":{"footerAd":"
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