Payable definitions
| Word backwards | elbayap |
|---|---|
| Part of speech | The part of speech of the word "payable" is an adjective. |
| Syllabic division | pay-a-ble |
| Plural | The plural of the word payable is payables. |
| Total letters | 7 |
| Vogais (2) | a,e |
| Consonants (4) | p,y,b,l |
When it comes to financial transactions, understanding the concept of payable is crucial. Payable refers to the amount of money that a business owes to its suppliers, vendors, or creditors for goods or services received. It is essentially a liability on the company's balance sheet.
Types of Payable
There are different types of payables that a business may have, including accounts payable, notes payable, and accrued liabilities. Accounts payable are short-term debts that must be paid off within a specified period, usually 30 to 90 days. Notes payable are formal documents that outline the terms of a loan and when it must be repaid. Accrued liabilities are expenses that have been incurred but not yet paid.
Managing Payables
It is essential for businesses to effectively manage their payables to maintain good relationships with suppliers and creditors. This includes staying on top of payment deadlines, negotiating favorable terms, and keeping accurate records of all transactions. By managing payables efficiently, businesses can avoid late fees, maintain a positive cash flow, and build trust with their partners.
Payable Turnover Ratio
The payable turnover ratio is a financial metric that measures how efficiently a company pays its suppliers. A high turnover ratio indicates that a company is paying off its debts quickly, while a low ratio may signal cash flow problems or inefficient payment practices. By monitoring this ratio, businesses can gain insights into their financial health and make strategic decisions to improve their payable management.
In conclusion, understanding payable is essential for any business looking to maintain healthy financial practices. By effectively managing payables, companies can foster strong relationships with their partners, maintain a positive cash flow, and ensure long-term success.
Payable Examples
- The invoice is payable upon receipt.
- The amount owed is payable in monthly installments.
- The bills are all payable by the end of the month.
- The fee for the service is payable upfront.
- All dues are payable within 30 days.
- The fine is payable within 7 days of issuance.
- The ticket is payable at the entrance of the event.
- The rent is payable on the first of each month.
- The balance is payable via credit card or cash.
- The fee is payable before attending the workshop.