MANAGEMENT

Detailed explanation-1: -Trade payables to be settled beyond 12 months from the date of balance sheet or beyond the operating cycle are classified under other long-term liabilities.

Detailed explanation-2: -Trade payables are generally classed as current liabilities, since payment is usually expected within 12 months or less.

Detailed explanation-3: -Trade payables are tracked on a company’s balance sheet. Look on the right-hand side for liabilities, then scan down to find current liabilities. Under current liabilities, you will find accounts payable. This is the section where trade payables are recorded.

Detailed explanation-4: -A current liability is one the company expects to pay in the short term using assets noted on the present balance sheet. Typical current liabilities include accounts payable, salaries, taxes and deferred revenues (services or products yet to be delivered but for which money has already been received).

Detailed explanation-5: -Accounts payable is typically one of the largest current liability accounts on a company’s financial statements, and it represents unpaid supplier invoices. Companies try to match payment dates so that their accounts receivable are collected before the accounts payable are due to suppliers.