The Word "Payable" Always Signifies a Liability

question 157

True/False

The word "payable" always signifies a liability.

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Definitions:

Net Cash Flows

The difference between a company's cash inflows and outflows during a specific period, representing its ability to generate value.

Depreciation

The accounting entry allocating the cost of a long-lived asset against income over the asset’s life. Depreciation is a noncash charge, so net income is generally less than true cash flow by at least the amount of depreciation.

Opportunity Costs

The cost of foregoing the next best alternative when making a decision.

Financing Costs

Expenses a company pays to borrow funds or raise capital through equity, including interest payments, fees, and other charges.