account payable

plural accounts payable

1. accountingA balance due to a creditor on a current account.

   After delivery, sellers issue an invoice, recorded as an account receivable by the seller and an account payable by the buyer.

   2017, Sergio L. Schumukler, Innovative Experiences in Access to Finance, page 50

   2 more examples

   Until that time, the amount is held as an account payable and added to the current liabilities of your business. When an outstanding expense is paid, the payment amount is subtracted from a cash account and removed from the accounts payable.

   2008, Barbara Findlay Schenck, John Davies, Selling Your Business For Dummies, page 99

   If a company, for example, purchases $500 in raw materials from its supplier on credit, the company incurs a $500 account payable.

   2013, Paul Pignataro, Financial Modeling and Valuation

   Synonyms: AP