Accounts Payable on the Income Statement refers to any outstanding debts owed by a company to its suppliers or outside creditors. It is important to record these liabilities accurately on a company’s financial statements in order to provide an accurate portrayal of its financial standing. In essence, Accounts Payable are amounts that have been incurred but not yet paid. By including a company’s Accounts Payable on their income statement, investors can gain a better understanding of how much cash is available for other things like investments and expansions. The bottom line is that when preparing an income statement, companies must take the time to consider their Accounts Payable in order to ensure they are presented with accuracy.