Definition:
In accounting, accounts payable are debts resulting from purchasing assets or receiving services on credit or on an open account. You have accounts payable when you have not yet paid for the assets or services you have received.
Also Known As: A current liability on your balance sheet.
Common Misspellings: Acounts payable; accounts payabel.
Examples:
Money that you owe to your suppliers and other creditors will be recorded as transactions in the account payable ledger.
