Accounts payable or "payables" are those amounts of money that a business must put aside to be paid for on-going debts.
Accounts Payable are listed under Liabilities in the company's Balance Sheet.
Examples of accounts payable include:
AP
Inter-company payables refer to amounts owed by one subsidiary or division of a corporation to another subsidiary or division within the same parent company. These transactions often arise from the sale of goods, services, or financing between entities in the same corporate group. Managing inter-company payables is crucial for accurate financial reporting and ensuring that the financial health of each entity is accurately reflected. Proper accounting for these payables helps prevent discrepancies and supports compliance with regulations.
Goods Received: Debit Stock Credit Goods Received Invoice Received: Debit Goods Received Credit Trade Payables Result: Debit Stock (Asset) Credit Trade Payables (Liability)
Paying bills as late as possible without damaging the firm's credit rating.
Trade payables are classified as current liabilities. This is because they represent amounts owed to suppliers for goods and services that are typically due within a year. As such, they are settled in the short term, reflecting a company's short-term financial obligations.
stock subscription payables is debt ?
Yes, payables are those that are not yet payed or plainly, a liability. ;3
AP
no
Trade and other payables refer to the liabilities a company owes to its suppliers and creditors for goods and services received but not yet paid for. This category includes trade payables, which are amounts owed to suppliers for inventory purchases, as well as other short-term obligations such as accrued expenses and taxes payable. These payables are recorded on the balance sheet and are crucial for managing a company's cash flow and working capital. Proper management of trade and other payables is essential to maintain good supplier relationships and ensure financial stability.
The taxes which is owed by a corporation in the goverment authority.
Inter-company payables refer to amounts owed by one subsidiary or division of a corporation to another subsidiary or division within the same parent company. These transactions often arise from the sale of goods, services, or financing between entities in the same corporate group. Managing inter-company payables is crucial for accurate financial reporting and ensuring that the financial health of each entity is accurately reflected. Proper accounting for these payables helps prevent discrepancies and supports compliance with regulations.
Liability payables or provissions made.
Goods Received: Debit Stock Credit Goods Received Invoice Received: Debit Goods Received Credit Trade Payables Result: Debit Stock (Asset) Credit Trade Payables (Liability)
Accounts Payable Cash/Bank/Goods etc
Paying bills as late as possible without damaging the firm's credit rating.
Accounts Receivable + Inventory - Accounts Payables. (excludes prepaid expenses and accrued liabilities)