Accounts Payable

View Financial Glossary Index

Definition

Accounting terminology for money that a company owes to vendors for services or products that it purchased on credit. Accounts payable appear on the balance sheet as a current liability.

For example, accounts payable increases when a company purchases inventory "on account." When the money is repaid, accounts payable decreases.

YCharts takes accounts payable numbers directly from balance sheet line items.

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