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What are the accounts payable？

帮考网校2020-10-12 17:55:24

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Accounts payable (AP) is a liability account that records the amounts owed by a company to its suppliers or vendors for goods or services purchased on credit. These are short-term debts that must be paid within a specific period, usually 30, 60, or 90 days. Examples of accounts payable include bills for raw materials, utilities, rent, and other expenses that a company incurs in its operations. AP is an important aspect of a company's financial management, as it affects cash flow, working capital, and overall financial health.

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