Question

definition of accounts payable aging report

Answer 1

Answer

"Accounts payable aging report is the report which shows all the accounts payable on a given date categorized based on the length of time for which they are due."

So accounts payable report classify accounts payable on a given date into different categories according to the period for which they are due such reports helps management in planning the cash outflows needed in coming period for payment or in anlysing the reason for why these accounts payable are outstanding and it is also seen that no accounts payable is outstanding due to fault of organisation as it may some time involve some kind of penal interest or late payment charges from the supplier and moreover it also leads to creating a bad image of the organisation in the market. so it is clear that accounts payable report helps in many ways to the management.

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