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September 19, 2008, Newsletter Issue #97: Accounts Payable Job
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Tip of the Week
Accounts payable are defined as the transactions arising from a company purchasing goods or services on account. The goods and services are purchased based on a promise for future payment. This purchase on account creates a liability known as an account payable. An accounts payable is considered a current liability on the balance sheet and/or financial statements. It is considered a current liability due to its quickness in being converted into cash. An accounts payable normally has a credit balance.
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