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Question: Explain about Accounts Payable.

Answer: Accounts payable is nothing but " money which a company need to pay to vendors for goods and services purchased on credit.

1.Accounts payable is a current liability of a company.

2. This item appears on liability side of a balance sheet



Category Accounts Payable Interview Questions & Answers - Exam Mode / Learning Mode
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Question: Explain about Accounts Payable.
Answer:

Accounts payable is nothing but " money which a company need to pay to vendors for goods and services purchased on credit.

1.Accounts payable is a current liability of a company.

2. This item appears on liability side of a balance sheet Source: CoolInterview.com

Answered by: hari | Date: 10/22/2008 | Contact hari Contact hari

Accounts payable is an account or a file that is maintained by a person or a company owes to suppliers, but has'nt paid yet until they receive invoice .After receiving invoice they 'll remove from the account.Thus, the A/P is a form of credit that suppliers offer to their purchasers by allowing them to pay for a product or service after it has already been received.
Source: CoolInterview.com

Answered by: sirisha | Date: 10/23/2008 | Contact sirisha Contact sirisha

Accounts payable means when we receive the bills from the sundry creditors for purchase or services we have to pay those bills is known as bills payable either its a purchase bill or telephone bills . Source: CoolInterview.com

Answered by: Sameer | Date: 11/14/2008 | Contact Sameer Contact Sameer

In accounting, accounts payable are debts resulting from purchasing assets or receiving services on credit or on an open account. You have accounts payable when you have not yet paid for the assets or services you have received. Source: CoolInterview.com

Answered by: vandana k ashok | Date: 1/27/2009 | Contact vandana k ashok Contact vandana k ashok

The Accounts Payable application component records and manages accounting data for all
vendors. It is also an integral part of the purchasing system: Deliveries and invoices are
managed according to vendors. The system automatically triggers postings in response to the
operative transactions. In the same way, the system supplies the Cash Management application
component with figures from invoices in order to optimize liquidity planning. Source: CoolInterview.com

Answered by: venkat pallepu | Date: 5/6/2009 | Contact venkat pallepu Contact venkat pallepu

Accounts payable is a file or account that contains money that a person or company owes to suppliers, but has not paid yet (a form of debt). When you receive an invoice you add it to the file, and then you remove it when you pay. Thus, the A/P is a form of credit that suppliers offer to their purchasers by allowing them to pay for a product or service after it has already been received. Source: CoolInterview.com

Answered by: tapas | Date: 6/4/2009 | Contact tapas Contact tapas

Accounts payable is a short term liability of the firm on return which the firm has acquired goods or services and promises to pay upon invoicing on the agreed period of time. Source: CoolInterview.com

Answered by: Nasr | Date: 9/12/2009 | Contact Nasr Contact Nasr

End to end accounts payble includes various stages for making a payment of an invoice recieved from a vendor. The AP activities are starts with the reciept of the invoice from a vendor and ends when it gets paid. The varios stages in an AP process as listed below:

1)Recieving the reciept of invoice from vendor.
2)Scanning the image in workflow.
3)Processing the invoice with the help of ERP system. (As per software)
4)Quality check will be done
5)Resolving to park the invoice.
6)Proposal of payment.
7)Payment will be done to vendor, as per the due date.
Source: CoolInterview.com

Answered by: Mani Kumar | Date: 1/10/2010 | Contact Mani Kumar Contact Mani Kumar

Companies have to buy goods (raw materials, machinery, computers etc) and services for running their business. In most cases, companies do not pay the suppliers (also called a vendor) immediately after the purchase of goods and services. Instead, they get credit from the supplier, which means the supplier allows them to make payment after a period of time.
So, the purchasing company owes money to the supplier from the date of the purchase till the date the payment is made. Money owed is called a liability and this liability for payment due on goods and services is called Accounts Payable.
In simple terms, Accounts Payable is money due to supplier for purchase of goods or services on credit.
Source: CoolInterview.com

Answered by: Ibrahim Khaleel | Date: 1/27/2010 | Contact Ibrahim Khaleel Contact Ibrahim Khaleel

Accounts payable is an outstanding debt which we have to pay after a period of time decided between the suppliers.. as soon it get recovers the A/R accounts get terminated by the following amount Source: CoolInterview.com

Answered by: kavita rohilla | Date: 2/2/2010 | Contact kavita rohilla Contact kavita rohilla

Money which a company owes to vendors for products and services purchased on credit. This item appears on the company's balance sheet as a current liability, since the expectation is that the liability will be fulfilled in less than a year. When accounts payable are paid off, it represents a negative cash flow for the company. Source: CoolInterview.com

Answered by: Liza Jena | Date: 5/4/2010 | Contact Liza Jena Contact Liza Jena

The payment that is due for purchasing of goods and service.That amount is account payable. Source: CoolInterview.com

Answered by: sonu | Date: 5/2/2016 | Contact sonu Contact sonu

Account payable are debt . That must be paid off within given period of times in order to avoid default. That is account payable. Source: CoolInterview.com

Answered by: vikas sharma | Date: 6/19/2016 | Contact vikas sharma Contact vikas sharma


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