The meaning of account payable refers to the obligation that a given company has towards its suppliers or creditors on the goods acquired using credit. It is a major component of current liabilities and depicts short term debts a company is liable to pay off within 30- 90 days. Timely tracking of account payables helps an organization to plan its expenditure, sustain relations with suppliers, and honoring their financial commitments in time. It is also important in the formulating of reliable and accurate financial reports

Source: accountingbyte.com/accounts-payable

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