Accounts payable
Financial Accounting glossary · Statement of Cash Flows
Definition
Amounts owed to suppliers for goods or services purchased on credit.
Accounts payable in plain English
Accounts payable is simply the pile of bills a company hasn't paid yet — money it owes to the suppliers who gave it goods or services and said "pay us later." It's the business version of running a tab at a store: you walked out with the stuff today, but you promised to settle up in, say, 30 days. Until that check goes out, the amount sits on the books as a liability (something owed). It's a normal, healthy part of running a business, not a sign of trouble.
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