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Yes, generally a payment towards an account payable affects cash. Unless by some odd chance you are bordering "trading item for item" then you pay with cash. Cash will be credited the amount paid while the account payable will be debited the same amount.
The Accounts Payable clerk is responsible for providing payment on an account.
Payment of account payable will reduce the total assets. When you pay your bills, you take money out of your account.
decreases the liability.
reduces liabilities
Foolish questions are not answered
The Accounts Payable clerk is responsible for providing payment on an account.
Yes, generally a payment towards an account payable affects cash. Unless by some odd chance you are bordering "trading item for item" then you pay with cash. Cash will be credited the amount paid while the account payable will be debited the same amount.
payable by return
Payment of account payable will reduce the total assets. When you pay your bills, you take money out of your account.
the verb TO PAY.
decreases the liability.
Yes Accounts Payable is your Short term liability it is payment that you need to pay within short time. It is basically associated with purchase of raw material , some salary due , payment of such bills etc. This will impact on your creditability and computation of working capital limit.
To increase payable float, a company can implement techniques such as strategically scheduling payment dates closer to the due date, negotiating longer payment terms with suppliers, using electronic payment systems to delay transactions, and optimizing cash flow forecasts to better manage payables. These methods can help extend the time it takes for payables to be settled, thereby improving working capital efficiency.
reduces liabilities
Payable in 30 days
A firm would delay the payment of Accounts Payable because they could use the money to invest in short term investments and earn some return