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Accounts payable

Accounts payable are those debts which have been accrued with suppliers but not yet paid.

Expanded Definition

In business, "accounts payable" constitute all of the short-term debt a company accrues as a result of receiving goods and services that haven't yet been paid for. In other words, accounts payable is a form of credit companies extend to one another.

The expectation is that any given liability in accounts payable will be fulfilled within one year of its accrual.

On a balance sheet, accounts receivable is listed as a current liability.

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