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Accounting Basics Debits and Credits Chart of Accounts Bookkeeping Accounting Equation Accounting Principles Financial Accounting Adjusting Entries Financial Statements Balance Sheet Working Capital and Liquidity Income Statement Cash Flow Statement Financial Ratios Premiums and Coupons Offered to Customers Definition The term premiums and coupons refers to promotions by companies offered to customers such as redeemable certificates, rebates, box tops, and cash discounts.
Explanation Current liabilities are defined as debts that must be paid within one year or one operating cycle, whichever is longer. Example Company A's marketing department would like to clear out some of the company's existing inventory of smartphones in advance of the launch of a new product line in October.
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Related Terms balance sheet , contingent liability , litigation, claims and assessments , loss contingencies , guarantee and warranty costs , premiums and coupons. It is most commonly used in a manual payment system, where it is part of the system of controls.
A voucher typically contains the following information:. The accounts to be charged to record the liability. Any applicable early payment discount terms. Voucher information may be assembled into a packet, where the basic voucher document is attached to the supplier invoice , evidence of receipt, and purchase order.
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- How is a voucher used in accounts payable? | AccountingCoach.
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This packet is useful for keeping related documents in one place, and makes it easier to both justify and audit payables transactions.