Accounts Payable
An account payable is an amount due to a vendor from which a business
has purchased goods or services “on account.”
“Accounts Payable,” the plural form of the term, is a current liability
listed on the balance sheet representing the total outstanding payables on the
date of the statement.
Accounts payable are analogous to accounts receivable; the vendor making a sale on credit books an account receivable, while the purchaser books an account payable.
Accounts payable are analogous to accounts receivable; the vendor making a sale on credit books an account receivable, while the purchaser books an account payable.
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