What is Accounts Payable?

[niyati]

I keep hearing about accounts payable in accounting, but I’m not exactly sure what it involves. Can someone explain what accounts payable means?

 

[Jarwish]

Accounts payable (AP) is an amount of money the business owes its suppliers or vendors in terms of goods and services that are received but not paid for yet. It is posted as a liability in the balance sheet of the company and is a short-term debt of the company that is to be repaid within a certain period, normally under a credit term. Effective AP management is important in ensuring proper relationships with suppliers and good cash flow.

 

[smith]

Accounts Payable (AP) is the money a business owes to its suppliers or vendors for goods and services received but not yet paid for. It is recorded as a liability on the company’s balance sheet. Managing accounts payable helps ensure timely payments and maintains good relationships with suppliers.

 

[Samuel]

Accounts payable (AP) refers to the short-term debts that a firm owes to its suppliers for products and services obtained on credit, which are shown as a current liability on a balance sheet. The accounts payable department is in charge of handling these liabilities, which include processing invoices, validating bills, and guaranteeing timely payments to preserve financial health and cash flow.

 

[daisy]

Accounts Payable (AP) is the money a business owes to suppliers or vendors for goods and services received but not yet paid for.
In simple terms, it’s your company’s short-term debts—like unpaid bills, invoices, or credit purchases—that must be settled within a specific time.

 

[alenaghose]

The sum of money that a business owes its vendors or suppliers for goods and services that have been received but not yet paid for is known as accounts payable (AP). It is a short-term debt of the business that must be paid back within a specific time frame, usually under a credit term, and is shown as a liability on the balance sheet. Good cash flow and healthy supplier relationships depend on efficient AP management.

 

[robertwilliam]

Accounts payable (AP) is the\u00a0short-term financial obligations, which the business must meet in return for goods or services supplied on credit by its vendors, representing the total outstanding invoices.

 

[Gsusangrey]

The short-term debt that a business owes its vendors or suppliers for goods or services that were obtained on credit is known as accounts payable (AP). It represents unpaid invoices that need to be paid, usually within 30 to 90 days, and is shown on the balance sheet as a current obligation.

 

[peterkavinsky]

Accounts Payable (AP) refers to the money a company owes to its suppliers or vendors for goods and services received but not yet paid for. It’s recorded as a liability on the balance sheet and represents short-term debts the company must settle.

 

[Emly]

Accounts Payable (AP) is money a company owes to suppliers or vendors for goods and services received but not yet paid.

 

[Shane Warne]

Accounts Payable (AP) is money, which a business owes to suppliers or creditors due to goods and services received but is yet to pay. It is captured as current liability in the balance sheet and short-term debts that should be paid within a given time.

 

[Mayank]

Accounts Payable refers to the money a company owes to its suppliers or vendors for goods and services purchased on credit. It’s recorded as a liability on the balance sheet, representing short-term debts that need timely payment.