Accounts Payable (AP) – Bills to be paid as part of the normal course of business. This is a standard accounting term, one of the most common liabilities, which normally appears in the Balance Sheet listing of liabilities. Businesses receive goods or services from a vendor, receive an invoice, and until that invoice is paid the amount is recorded as part of “Accounts Payable.”

Was this article helpful?
1 Star2 Stars3 Stars4 Stars5 Stars (16 votes, average: 4.06 out of 5)
Tim BerryTim Berry
Tim Berry

Tim Berry is the founder and chairman of Palo Alto Software and Bplans.com. Follow him on Twitter @Timberry.