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Accounts payable (AP), or "payables," refers to a company's short-term obligations owed to its creditors or suppliers, which have not yet been paid. Payables...
Accounts payable refers to the money your business owes to its vendors for providing goods or services to you on credit. Typically, these are the short-term debts that you owe to your suppliers. In other words, the total amount outstanding that you owe to your suppliers or vendors comes under accounts payable.
Accounts Payable refers to a business’s obligations to suppliers and creditors for purchases made on an open account. It specifically refers to any amounts owed expected to be paid within one year or less (usually due in 30 to 60 days).
Accounts Payable, or AP in its abbreviated form, is a ledger entry made for amounts owed to creditors in the short-term, typically less than a year, on an open account. It is generally recorded as a collection of invoices and promissory notes received from a vendor.
Accounts payable is the funds due to subcontractors or vendors for goods and/or services. The accounts payable balance includes bills and other liabilities that must be paid over the next few months. Accounts payable is a component of the liabilities balance in the balance sheet equation: Assets - liabilities = equity.
Accounts payable are a liability account, representing money you owe your suppliers. Accounts receivable on the other hand are an asset account, representing money that your customers owe you. Let’s say a fictional business called Paint World sends you an invoice for $500 to pay for a shipment of paint.
What is Accounts Payable (AP)? Accounts Payable (AP) is generated when a company purchases goods or services from its suppliers on credit. Accounts payable is expected to be paid off within a year’s time or within one operating cycle (whichever is shorter).
Accounts payable is created when a company receives goods or services from a supplier but delays payment, causing a higher AP balance. The formula to calculate accounts payable is equal to the beginning payables balance plus credit purchases, subtracted by supplier payments.
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, and service purchases.
Accounts Payable represents a company's short-term debts and is listed under Current Liabilities on the Balance Sheet. Accounts Payable is not a business expense; it is a liability due within a specific time frame usually one year.