Account Payables Definition

Account Payables Definition:

Accounts payable are all of the money owed by a business to its creditors for goods and services purchased on credit. In other words, accounts payable are debts that a company has not yet paid off. When a company buys something on credit, it is said to have made a purchase on account. The amount owed is recorded as a liability on the company’s balance sheet until it is paid off.