Sunday, June 24, 2018

Accounts Payable

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.

No comments:

Post a Comment