What Are Accounts Payable?

Business & Management
#1

Accounts payable (AP) is a general ledger account that indicates a company’s obligation to pay creditors or suppliers for short-term debt. Another frequent meaning of “AP” is the business department or division in charge of making payments to suppliers and other creditors on behalf of the firm.
Amounts owing to vendors or suppliers for products or services received but not yet paid for are referred to as accounts payable. The accounts payable balance on the balance sheet is the total of all outstanding money due to vendors.
The cash flow statement shows the rise or reduction in total AP from the previous period. To enhance cash flow, management may seek to settle outstanding invoices as soon to their due dates as feasible.

#2

An account payable comes into existence the moment one person or entity owes something to another person or entity., typically for goods or services or money. typically but not necessarily, the amount is for a currency such as dollars or euros

There are many, many different kinds of accounts payable, depending on when and why the account came into being and when and how the underlying debt must be paid