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Accounts payables

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Accounts payables include any money that’s owed for the purchase of goods or services that the company intends to pay within a year. Say, for instance, that a company purchases $500 in paper clips and plans to pay that amount off in six months. The company adds $500 to the value of its accounts payables. But after the company pays an invoice for the money it owes, it removes the value of that invoice from the accounts payables.

Corporate Finance For Dummies

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