Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (16) | Ignore Thread Prev | Next
Author: StringCheeseMark Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 18386  
Subject: Re: Q: Finding Debt Date: 7/29/2003 12:58 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 7
Now let's go back to the definition of debt. From the American Heritage Dictionary -
debt n. - 1. Something owed, such as money, goods, or service. 2. An obligation or liability to pay or render something to someone else.


<><>

I don't recall the american heritage dictionary as the standard for accounting practice.

Accounts payable is not debt but is a liability.

Personal finance example: I renew my subscription to business week. I send in a card extending my subscription two more years at the cost of $40. I now have a $40 increase in accounts payable. A month later I receive the bill for the subscription and put it on my visa which carries 8% interest. My accounts payable decreases by $40 and my short term debt increases by the same.

What on earth is so tough to understand about that?

scm
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (16) | Ignore Thread Prev | Next

Announcements

2013 Feste Award Voting Begins!
Who will win the 2013 Feste Award? Vote now for the Fool that most exemplifies the Fool Community mission of Learning Together!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Tax Strategies

TMFPMarti-Feeling Good
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement