Accounts Payable
Accounts Payable (alternatively known as Accounts Payable account or A/P account) is the ledger account that, after postings are complete, shows the total amount of money that the creditors of the legal entity owe to this entity.
Definitions
According to College Accounting: A Practical Approach by Slater (13th edition),
- Accounts Payable (A/P). Unpaid supplier invoices and bills (that is money owed by the business to other businesses) are grouped under Accounts Payable - 'AP' for short - and are found on the balance sheet as a liability. Once a bill is paid it is removed from this group.
Related concepts
- Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.
- Bookkeeping. Recording, filing, and retrieving of financial data, as well as producing those financial reports that are required by laws.
