accounts payable
noun1
The total amount of money that is owed by a customer to its suppliers of goods and services and is counted by the customer as a current unpaid debt.
- When such a practice is to be followed, two methods may be employed: (1) accounts payable may be reported net or (2) accounts payable may be reported at the gross invoice price with a payable offset balance or liability valuation account reporting the purchases discounts available.1972, Harry Simons, Intermediate Accounting; Comprehensive Volume, page 254:
- Cost of goods sold are divided by the accounts payable to get the payables turn ratio.1994, S. B. Costales, Geza Szurovy, The Guide to Understanding Financial Statements, page 61:
1 more example
- Masters, with accounts payable averaging 2,296 livres (median = 1,008) were far more heavily indebted than the faubourg bakers (712 and 320 livres)1996, Steven Laurence Kaplan, The Bakers of Paris and the Bread Question, 1700-1775, page 363: