Definition
Accounts payable represent amounts owed by a company to suppliers or vendors for goods or services received on credit. Accounts payable arise from purchases made on credit terms, where the company agrees to pay the supplier at a later date. Managing accounts payable involves timely payment of obligations to suppliers while optimizing cash flow and taking advantage of favorable payment terms. Accounts payable are recorded as liabilities on the balance sheet and are typically settled within a specified period.
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Private Limited Company (Ltd)
A Private Limited Company (Ltd) is a type of company where the ownership is divided into shares held by a small number of shareholders. The liability of shareholders is limited to the amount unpaid on their shares, and the company’s shares cannot be traded publicly on the stock exchange.
Limited Liability Partnership (LLP)
A Limited Liability Partnership (LLP) is a business structure where partners have limited personal liability for the debts and obligations of the partnership. Each partner’s liability is limited to their investment in the LLP, and they are protected from the actions of other partners.