Accounts Payable

Financial Term

Accounts Payable is a standard accounting category on a company’s balance sheet that includes all of your due bills – in accounting-speak, obligations to pay for goods and services received.

These are sometimes called “trade accounts” or, from your supplier’s perspective, “trade credit,” and are typically due within 30 to 60 days. You would not include long term debt here, such as the full amount of a mortgage.

Since Accounts Payable represent something you owe, it’s on the liabilities side of the balance sheet.

Don Gooding

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