The account payable is an amount owed to a supplier or vendor for goods or services that were provided in advance of payment. However, some people use the term only if the amount is already recorded in the general ledger account Accounts Payable. (Until it is, they refer to the amount as one of the company’s accrued liabilities.) For others, it is an account payable even if it is not yet recorded in Accounts Payable.
Accounts payable (AP) is money owed by a business to its suppliers shown as a liability on a company’s balance sheet.
Accounts payable is a balance sheet term for creditors. It is the total amount of money owed by the business to suppliers who have sold items on credit terms that it must repay within the next 12 months.
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