An account
payable is an amount due to a vendor from which a business has purchased goods
or services “on account.” “Accounts
Payable,” the plural form of the term, is a current liability listed on the
balance sheet representing the total outstanding payables on the date of the
statement.
Accounts
payable are analogous to accounts receivable; the vendor making a sale on
credit books an account receivable, while the purchaser books an account
payable.
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