accounts payable


Money which a company owes to vendors for products and services purchased on credit. This item appears on the company's balance sheet as a current liability, since the expectation is that the liability will be fulfilled in less than a year. When accounts payable are paid off, it represents a negative cash flow for the company.

See also: List of Key Accounting Terms and Definitions at

Use accounts payable in a sentence

I wondered what our accounts payable were because we purchased a lot of stuff on credit and needed to pay it off.

​ Was this Helpful? YES  NO 9 people found this helpful.

The company would be forced to file for bankruptcy if they did not find some way to get some more funds to dedicate to accounts payable , as creditors were closing in.

​ Was this Helpful? YES  NO 10 people found this helpful.

When my company bought a large amount of steel without telling me, I only learned about it when I saw it show up in the list of companies we owed money to as part of our accounts payable.

​ Was this Helpful? YES  NO 8 people found this helpful.

Show more usage examples...

Browse by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
average days' sales uncollected life insurance in force