Explain what Accounts payable means.


Explain what Accounts payable means.

Current Liabilities:

The total liabilities of a business are classified into current liabilities and long-term liabilities on the basis of their time period to maturity. Current liabilities should be repaid within a period of one year or less. All the liquidity ratios determine the ability of a business in repaying its current liabilities.

Answer and Explanation: 1

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When a company purchases goods on credit, it records a liability representing the expense incurred but not yet paid for. This liability is known as...

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What Are Accounts Payable? - Definition & Examples


Chapter 1 / Lesson 21

Learn what accounts payable is by definition and its examples. Classify if it is an asset or a liability and be informed with the formula on how to calculate it.

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