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.


Related Terms

days payable -  More

adjusting entry -  More

capital structure -  More

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accounts payable is ...

... part of the Accounting, Lending & Credit and Investor Relations subjects.

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