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Accounts Payable are the amounts a company owes to its suppliers or vendors for goods and services purchased on credit. These are short-term liabilities.
Accounts Payable Turnover: Accounts payable turnover is a financial ratio that measures how many times a company pays its average accounts payable balance in a specific period. It assesses the efficiency of managing trade credit.
Accounts Receivable: Accounts receivable are amounts due to a company from its customers for goods or services sold on credit. These represent short-term assets.