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

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

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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.

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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.

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