ACCOUNTS PAYABLE Definition

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ACCOUNTS PAYABLE (AP) are trade accounts of businesses representing obligations to pay for goods and service received.

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SHORT SALE is the selling of a security that the seller does not own, or any sale that is completed by the delivery of a security borrowed by the seller. Such sales are made in anticipation of a decline in the price of the security to enable the seller to cover the sale with a purchase at a later date, at a lower price, and thus at a profit. Short sellers assume the risk that they will be able to buy the stock at a more favorable price than the price at which they sold short.

CAPITAL EMPLOYED is the value of the assets that contribute to a companys ability to generate revenue, i.e., fixed assets plus current assets minus current liabilities.

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