![]() ![]() While non-current liabilities are long-term, current obligations last. Accounting standards require companies to classify these liabilities into non-current and current portions. Trade Payable: Definition, Meaning, Accounting, Example A company may accumulate several liabilities throughout its operations.This is called the credit period, and the length of time between the invoice date. ![]() It helps the business to understand the pattern of the payments and how they fast are in making payments to the creditors. Dividing that average number by 365 yields the accounts payable turnover ratio. Accounts payable turnover rates are typically calculated by measuring the average number of days that an amount due to a creditor remains unpaid.
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