accounts payable

Definition

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 InvestorGuide.com.

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 25 out of 26 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 25 out of 25 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 25 out of 25 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
total current liabilities days payable