goods and services

What is a Current Account?

Current Account is an important indicator of the economic health of a nation. It keeps a record of the transactions of the nation with the rest of the world i.e. the net of trade in goods and services, net transfer payments and also net earnings on cross-border investments over a span of a year. It […]


What is the meaning of Accounts Receivable?

Accounts receivable are the due invoices for a company or the payments which the company has to receive from its clients who have purchased its goods and services on credit. The credit period is usually short and stretches from a few days to months. When the customers buy products from a company on credit, the […]

What is Balance of Payments?

The Balance of Payments is defined as the synopsis of the transactions of the national economy with the rest of the world. The term covers all the transactions which are done between the residents and non-residents of the country encompassing the goods, services and income. It also covers the liabilities and all transfer as gifts. […]

What is the meaning of Accounts Payable?

Accounts Payable refers to an accounting entry which stands for an obligation of an entity to pay-off short-term debt to its creditors to avoid default. It is a liability and thus is put under the header of current liabilities in balance sheets of many firms. It is treated as a liability because the company orders […]