accounts (noun, ac-counts, \ əˈkaʊnts \) payable (adjective, pay-a-ble, \ ˈpeɪəbl \)
Definition: is a certain amount of money that a firm owes either to a supplier, vendor or other organization because it has acquired certain goods or services from them. A/p can also be considered as an unpaid bill and are almost always treated as a liability that needs to be paid so that a company can avoid serious financial consequences. The presence of accounts payable on a firm’s balance sheet is a sign that it is either suffering from financial problems or low-quality accounting services.
In a Sentence:
- The latest purchase of printers for our office was registered as accounts payable since the management didn’t possess sufficient funds to pay the suppliers immediately.
- The sum displayed in our credit balance under accounts payable has scared off a potential business partner.
- The company’s management has taken several crucial steps to settle the issue of accounts payable by using only the funds available to them immediately.
Synonyms and related words: accounts payable to sales ratio, open book management, bankruptcy, accounts receivable
