Accounts payable are those debts which have been accrued with suppliers but not yet paid.
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.
Recent Mentions on Fool.com
- Skullcandy Raises Guidance After Mixed Quarter
- Thanks to Solid Q2 Results, Windstream Holdings, Inc. Takes a Breather
- Clean Energy Fuels Corp. Gross Margins and Fuel Sales Up, but a Few Things Bear Watching
- A Decent Quarter for Littelfuse Inc.
- 3 Biotech Stocks with Low Liquidity Ratios -- Are They in Trouble?
- What Is a Contingent Beneficiary? Something You Shouldn't Overlook