What is accounts payable

Question

Accepted Answer

Accounts payable refers to the amount of money a company owes to its suppliers or vendors for goods or services received but not yet paid for.

Accounts payable is a liability on the company's balance sheet.
It represents the short-term debt owed by the company.
It includes invoices from suppliers, utility bills, and other expenses.
Accounts payable is typically recorded as a current liability.
It is an important aspect of cash flow management and working capital.
Companies often have payment terms with their suppliers, such as net 30 or net 60, which determine when the payment is due.
Late payments may result in penalties or strained relationships with suppliers.

Accepted Answer

When a company purchases goods on credit which needs to be paid back in a short period of time,

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