Accounts Payable

Accounts payable is money a business owes to suppliers or vendors for goods and services it has already received but has not yet paid for. It is a liability, usually listed as a current liability because it is due within a year.

For example, if a store buys inventory on credit, the unpaid invoice is accounts payable until the company sends cash. Analysts watch this account because it is a short-term obligation the business must cover.