Accounts payable is defined as money owed by a company to its suppliers. In other words, it is the amount that a company owes for goods and services that it has received from its suppliers on credit.
Accounts payable is an important part of a company’s financial management and needs to be closely monitored. The money owed to suppliers represents a liability for the company, and if not managed properly, can lead to financial difficulties. It is important to keep track of Accounts Payable in order to maintain good relationships with suppliers and avoid defaulting on payment.