Accounts Payable

What are Accounts Payable?

Accounts Payable are amounts which are owed by you to your suppliers, they are sometimes referred to as Trade Creditors or simply Creditors.

If your supplier allows you credit and invoices you for a product or service and you make payment at a later date 30 days 60 days etc, then while you owe the supplier the money they are classified as an Accounts Payable of your business.

Accounts Payable are recorded in the balance sheet of the business under the heading Current Liabilities, that means they are payable within a year.

For further information on the accounts payable definition see the Wikipedia definition.

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Last modified October 23rd, 2014 by Team

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