Accounts Payable Example Spreadsheet. Account payable is defined as money owed by any companies/entities to their suppliers. It is for goods or services that those companies are received where particular suppliers are invoicing them with credit term of payments.
Accounts payable are obligations of a business that originate because of purchases made on credit (e.g. for raw material, finished goods etc.), the money is yet to be paid for these transactions.
Accounts payable is a liability for businesses.
APT derives from Income statement Cost of Goods Sold and Balance sheet Accounts payable. And, they refer to some of the monies owed them as receivables, such as Accounts receivable. Accounts payable, considered a short-term debt obligation owed by a company to suppliers and creditors, are listed on a company's balance Accounts payable have payment terms associated with them.