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A company has a December year end and creates checks to pay their vendors towards the...

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Accounting

A company has a December year end and creates checks to paytheir vendors towards the end of the month. The company creates allthe proper journal entries at the time of creating the checks, butthey do not mail the checks until January. Explain which, if anyfinancial ratios are affected by this decision. Explain why thisdecision would be made?

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All the journal entries have been passed which means the journal entry for the payment to vendors is also posted This will reduce the accounts payable value in the ledger The checks are not    See Answer
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