There may be a 2-3 day delay for cash from restaurant sales due to credit card processing. However, food purchases may be paid for the same day the food isContinue readingCash Vs Accrual Accounting: Whats The Difference?

It demonstrates liquidity for paying its suppliers and can be used in any analysis of a company’s financial statements. Creditors use the accounts payable turnover ratio to determine the liquidityContinue readingAccounts Payable Turnover Ratio: Definition, Formula & Example