Do you have difficulty understanding a financial term? Check unfamiliar terms by first letter in our glossary below.
Accounts payable (AP) is an accounting position that records the amount of money a company owes to its creditors. It shows the debt the organization has to be paid off within a short period of time. Payable accounts are typically listed as a current liability in accounting balance sheets. AP, or Accounts Payable, is a division of a business that is responsible for making payments to suppliers, creditors and other accounts. This is an important task that helps the company stay financially up-to-date with its financial obligations.