Paid vs. Payable — What's the Difference?
By Fiza Rafique & Urooj Arif — Updated on May 16, 2024
Paid refers to money that has been given in exchange for goods or services, whereas payable refers to money that is owed and yet to be paid.
Difference Between Paid and Payable
Table of Contents
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Key Differences
Paid denotes that a financial obligation has been fulfilled. For example, when an invoice is marked as paid, it means the payment has been received. Payable, on the other hand, indicates an outstanding obligation. An amount is considered payable until the payment is made.
Paid often reflects a completed transaction. For instance, a bill stamped as paid shows that the amount due has been settled. In contrast, payable signifies a pending transaction, such as a bill that still requires payment.
The term paid suggests finality in financial dealings, showing that the debtor has met their obligation. Payable represents anticipation of payment, implying that the creditor is still awaiting the funds.
Paid transactions are typically recorded as expenses or costs that have been cleared. Conversely, payable amounts appear as liabilities on a balance sheet until they are settled.
Comparison Chart
Definition
Money that has been given
Money that is owed and not yet paid
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Transaction Status
Completed
Pending
Financial Record
Expense
Liability
Time Reference
Past
Future or present
Example Usage
Paid invoice
Payable amount
Compare with Definitions
Paid
Money exchanged for goods/services.
She has paid for the groceries.
Payable
Due for payment.
The amount payable is $500.
Paid
Settled a debt or bill.
The invoice was marked as paid.
Payable
Recognized as a liability.
Accounts payable include supplier debts.
Paid
Fulfilled a financial obligation.
Rent is paid monthly.
Payable
Expected to be settled.
Rent is payable on the first of each month.
Paid
Rewarded for work or service.
He was paid for his consultancy.
Payable
An amount owed.
Taxes payable by the end of the year.
Paid
A transaction completion state.
The loan is fully paid.
Payable
Requiring payment on a certain date; due.
Paid
Past tense and past participle of pay1.
Payable
Requiring payment to a particular person or entity.
Paid
A past tense and a past participle of pay2.
Payable
Capable of producing profit
A payable business venture.
Paid
Simple past tense and past participle of pay
Payable
A debt that is owed to a creditor
Tried to balance inventory, payables, and receivables.
Paid
That is not free of charge; that costs money.
Paid service
Payable
Due to be paid.
Is value-added tax payable on planning application fees?
Paid
(slang) Rich, wealthy
Payable
Able to be paid.
Paid
Receiving pay; compensated; hired; as, a paid attorney.
Payable
Of a mine etc.: capable of yielding profit; profitable.
Paid
Satisfied; contented.
Payable
(in the plural) Debts owed by a business; liabilities.
Paid
Marked by the reception of pay;
Paid work
A paid official
A paid announcement
A paid check
Payable
A thing that may be paid.
Paid
Involving gainful employment in something often done as a hobby
Payable
That may, can, or should be paid; suitable to be paid; justly due.
Thanks are a tribute payable by the poorest.
Paid
Yielding a fair profit
Payable
That may be discharged or settled by delivery of value.
Payable
Subject to or requiring payment especially as specified;
A collectible bill
A note payable on demand
A check payable to John Doe
Payable
Not yet paid but required.
Interest payable is recorded on the balance sheet.
Common Curiosities
What does paid mean?
Paid means money has been exchanged to settle a debt or bill.
Is payable an adjective?
Yes, payable is an adjective describing something that needs to be paid.
How does paid appear on financial statements?
Paid amounts are recorded as expenses.
Can payable be used for past transactions?
No, payable is used for current or future obligations.
What does payable mean?
Payable refers to money that is owed and yet to be paid.
Can paid be used for future payments?
No, paid refers to completed transactions.
Is paid a past tense?
Yes, paid is the past tense of pay.
What is an example of a paid expense?
A utility bill that has been settled is a paid expense.
Does paid always involve money?
Primarily, paid involves money but can also mean settling obligations.
Is paid or payable used in accounting?
Both terms are used, with paid indicating settled transactions and payable indicating pending obligations.
What is an example of a payable amount?
Rent due next month is a payable amount.
Can paid indicate the completion of any transaction?
Yes, paid indicates the transaction is complete.
How does payable appear on financial statements?
Payable amounts are listed as liabilities.
Can payable be used in legal documents?
Yes, payable is commonly used in legal and financial documents.
Does payable only apply to money?
Payable generally refers to money but can also include other liabilities.
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Written by
Fiza RafiqueFiza Rafique is a skilled content writer at AskDifference.com, where she meticulously refines and enhances written pieces. Drawing from her vast editorial expertise, Fiza ensures clarity, accuracy, and precision in every article. Passionate about language, she continually seeks to elevate the quality of content for readers worldwide.
Co-written by
Urooj ArifUrooj is a skilled content writer at Ask Difference, known for her exceptional ability to simplify complex topics into engaging and informative content. With a passion for research and a flair for clear, concise writing, she consistently delivers articles that resonate with our diverse audience.
