oboloo Glossary

Increase In Accounts Payable

oboloo Glossary

Increase In Accounts Payable

Increase in Accounts Payable is defined as an increase in the total amount of money owed to a creditor arising from the purchase of goods or services on credit. This increase represents a liability on the part of the organization and requires that it repay the debt within an established agreement. An increase in accounts payable is recorded as a debit to the accounts payable account and a credit debited to the cash account.