accounts payable cycle

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Querist : Anonymous

Querist : Anonymous (Querist)

04 August 2010 what is account payable cycle.what is diff. b/w account payable and account payable cycle.

As per my knowledge a/c payable are just like creditors.It is an account that tells us what the company is owing towards its suppliers
it is current liability

Aditya Maheshwari

Aditya Maheshwari (Expert)
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04 August 2010 Accounts payable cycle may be the cycle by which the creditors are settled i. e. credit period and accounts payable as creditors outstanding as on that date and is a current liability.

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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05 August 2010

Account Payable is a major part of Accounting cycle that pertains to obligations arising from the promise to pay later on in connection with the purchases and or services rendered, and in more technical sense, the A/P is a measure of time for making cash outflows into cash inflows.

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CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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05 August 2010 Agreed...

Accounts payable is your creditors & expenses already incurred but yet to be paid.

While Accounts payable cycle defines the average period in terms of days in which any credit expenses gets paid.

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Querist : Anonymous

Querist : Anonymous (Querist)

05 August 2010 thanks

Aditya Maheshwari

Aditya Maheshwari (Expert)
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05 August 2010 U can also thanks by clicking on the thank user icon below the name.

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