Account payable

Definition

Accounts payable is the amount of money that a company owes to its suppliers or creditors for goods and services received but not yet paid for. It is considered a short-term financial obligation that must be paid within a given period to avoid default.

Related terms

Short: Term Financing - This is a type of business loan or credit facility used by companies to cover immediate operational costs, including accounts payable.

Creditors: Creditors are individuals or institutions to whom money is owed by the company for goods or services provided on credit terms.

Cash Flow Management: This involves monitoring, analyzing, and adjusting your business's cash flows to ensure there are sufficient funds available for meeting short-term obligations such as accounts payable