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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About the Author
Chartered accountant Michael Brown is the founder and CEO of Double Entry Bookkeeping. He has worked as an accountant and consultant for more than 25 years in all types of industries. He has been the CFO or controller of both small and medium sized companies and has run small businesses of his own. He has been a manager and an auditor with Deloitte, a big 4 accountancy firm, and holds a BSc from Loughborough University.