P2P Cycle What's is accounts payable

Question

Accepted Answer

Accounts payable is a financial term that refers to the money a company owes to its suppliers or vendors for goods or services received.

Accounts payable represents the outstanding invoices or bills that a company needs to pay.
It is a liability on the company's balance sheet.
Accounts payable is an important part of the procure-to-pay (P2P) cycle.
It involves receiving and verifying invoices, recording them in the accounting system, and making timely payments.
For example, if a company purchases raw materials from a supplier, the supplier will send an invoice for the amount owed. This invoice becomes part of the accounts payable until it is paid.
Accounts payable can also include expenses like utility bills, rent, or professional services.
Managing accounts payable efficiently is crucial for maintaining good relationships with suppliers and ensuring smooth operations.

Top Wipro Senior Executive Operations interview questions & answers