Salary payable is classified as a current liability account under the head of current liabilities on the balance sheet. All the general rules of accounting are also applicable to this account. Let us take the example of another company ASD Inc. which prepares its financial statements on December 31 of every […]

However, about one third of private companies choose to comply with these standards to provide transparency. For example, GAAP stipulates how to file income statements, what financial periods to include, and how to report cash flow. GAAP helps govern the world of accounting according to general rules and guidelines. It attempts to […]