When it comes to understanding the official business definition of Accounts Payable, it is important to understand the difference between a credit and a debit. Accounts Payable is a credit, meaning that it is an amount owed to a vendor or supplier. This amount is recorded as a liability on the balance sheet, and is usually due within 30 days. When the payment is made, the Accounts Payable is reduced, and the cash account is increased. On the other hand, a debit is an amount owed by a customer or client. This amount is recorded as an asset on the balance sheet, and is usually due within 90 days. When the payment is made, the Accounts Receivable is reduced, and the cash account is increased. In conclusion, Accounts Payable is a credit, and Accounts Receivable is a debit.