Payable Definition and Legal Meaning
On this page, you'll find the legal definition and meaning of Payable, written in plain English, along with examples of how it is used.
What is Payable?
The sum of money or a debt which a person has an obligation to pay at a certain date is called payable. In Businesses, payable are liabilities that has to be met by certain date. If theres no date specified, the debts are due immediately.
History and Meaning of Payable
Payable has been used in accounting and finance since the early days of business. Simply put, payable refers to a debt or obligation that must be paid at a certain time. In the world of business, payables generally refer to accounts payable, which includes money owed to suppliers, vendors, service providers, and other third parties.
Payables offer a way for businesses to manage their cash flow and ensure that they can continue operating. It's important for businesses to manage their payables in a timely and effective manner, so that they can maintain good relationships with their creditors and avoid any negative consequences of late payments.
Examples of Payable
Here are a few examples of how the term payable might be used in different contexts:
- "We have several payables due at the end of the month, including rent, utilities, and our vendor account."
- "The company's accounts payable clerk is responsible for ensuring that all invoices are paid on time and accurately."
- "If you have any payables that are overdue, please contact our collections department immediately to arrange payment."
Legal Terms Similar to Payable
Here are a few related terms that might be useful to know:
- Accounts receivable: This is the opposite of accounts payable, and refers to money owed to the company by its customers.
- Notes payable: This refers to a formal written agreement that outlines the terms of a loan, including the amount borrowed, interest rate, and repayment schedule.
- Current liabilities: This is a broader term that includes payables, along with other short-term obligations like taxes, salaries, and interest payments.