account payable

account payable

plural accounts payable


:  the balance due to a creditor on a current account

First Known Use of ACCOUNT PAYABLE


account payable

noun    (Concise Encyclopedia)

Any amount owed as the result of a purchase of goods or services on a credit basis. Although a firm making a purchase issues no written promise of payment, it enters the amount owed as a current liability in its accounts. Companies often incur this type of short-term debt in order to finance their inventories, especially in industries where inventory turnover is rapid. See also account receivable.


Next Word in the Dictionary: account receivable
Previous Word in the Dictionary: accounting machine
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