Any amount owed as the result of a purchase of goods or services on a credit basis. Although a firm making a purchase issues no written promise of payment, it enters the amount owed as a current liability in its accounts. Companies often incur this type of short-term debt in order to finance their inventories, especially in industries where inventory turnover is rapid. See also account receivable
An amount owed to a supplier for good or services purchased on credit; payment is due within a short time period, usually 30 days or less
An unpaid invoice for the purchase of merchandise, supplies, and services, usually shown on a balance sheet as due within one year
An amount owing to creditors, representing a liability, for purchases of goods or services
Account Payable represents amounts the company owes to its regular business creditors from whom it has bought goods or services on open account Advertising expense that will be paid to the advertising agency is Account Payable
An amount owed to a supplier for goods or services purchased on credit; payment is due within a short time period, usually 30 days or less