Accounts payable

Accounts Payable refers to the amount of money a company owes to its suppliers or vendors for goods or services that have been received but not yet paid for. It represents the outstanding bills or invoices that the company needs to settle within a specified payment period. When a company purchases goods or services on credit from a supplier, it incurs an accounts payable liability. The supplier provides the goods or services upfront, and the company agrees to make payment at a later date, typically within 30 to 90 days.