Definition: Accounts payable, also called trade payables, is a short-term liability account used to record debts from purchasing goods or services on credit. Primarily this account is used to record inventory purchases from vendors and other trade debts, but it is also used for supply, equipment...
Accounts payable (AP) represents money owed by a company to suppliers and its obligation to pay off these short-term debts within a given period. This amount is recorded into a general ledger along with all your financial transactions to keep track of your expenses in one master log. AP wil...
Definition of Accounts Payable Accounts payable involves the amounts owed by a company to its suppliers (vendors) for goods or services the company received on credit. Accounts payable is also referred to as trade payables. Examples of Accounts Payable When someone uses the term accounts payable ...
Accounts payable (AP) is an account in the general ledger that represents a company’s obligation to pay for items or services purchased on credit. So accounts payable are what you owe to your vendor or supplier for items or services purchased on credit. When any goods or services are purch...
Definition of an Account Payable An account payable is an amount owed to a supplier or vendor for goods or services that were provided in advance of payment. However, some people use the term only if the amount is already recorded in the general ledger account Accounts Payable. (Until it ...
Definition and Type What Is Accounts Payable? How the AP Process Works Accounts receivable FAQ What does it mean to be an account receivable? An account receivable refers to the money owed to a business by its customers for goods or services provided on credit. It represents a financial asset...
This is a very simple balance sheet that a small business might have. Accounts receivable vs. accounts payable The term contrasts with accounts payable, which has the opposite meaning. Accounts payable or A/P refers to moneya company owes its suppliers.In the world of bookkeeping, accounts pay...
Accounts payable is not only paying vendor bills, but managing accounts payable is part of running your business efficiently. Implementation of good account payable software can help you to eliminate late payment fees and build good business relationships with your vendors. ...
So, let’s start with its definition. What is the Accounts Payable Process? Before understanding the accounts payable process, you need to know what accounts payable means. Accounts payable means money that a business owes to its suppliers. The accounts payable (AP) process is the process of ...
Definition:The schedule of accounts payable is a listing of all vendors in the accounts payable ledger that the company currently owes money along with the current account balances. In other words, the schedule of accounts payable is a list of all the people who the company owes in the accoun...