accounts payable (A/P)

Related Terms
Unpaid bills. Accounts that are owed to suppliers (trade creditors) as distinguished from accrued interest, rent, salaries, taxes, and other such accounts. Accounts payable are shown under current (short-term) liabilities in the balance sheet. Lenders and investors examine the relationship of these accounts to the firm's purchases in order to judge the soundness of its day to day financial management.

Use 'accounts payable (A/P)' in a Sentence

When the accounts payable balance is cleared, and all the vendors have received their checks, delivery of products will resume.
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I had to work overtime this week in order to get all of our accounts payable processed so our vendors remained happy.
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The accounts payable to the flower company make up a small portion of the amount of the ongoing unpaid bills that the company owes, due to the constant need for more inventory.
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