Business & Sales

What Is Accounts Payable?

Accounts payable (AP) is money a business owes to its suppliers or vendors for goods and services received on credit but not yet paid for. It is recorded as a current liability on the balance sheet and is typically due according to the supplier’s payment terms.

Managing Payables

Paying on time maintains supplier relationships and avoids late fees; paying near the due date rather than immediately can help cash flow.

Early Payment Discounts

Terms such as “2/10 Net 30” offer a 2% discount for paying within 10 days.

🧮 Calculate It Yourself

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🔗 Related Terms

Accounts Receivable Working Capital Liability Net 30 Payment Terms

More Business & Sales Terms

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Last updated: September 29, 2026. This definition is for general educational purposes only. It is not financial, investment, tax, legal, or medical advice, and it does not recommend any product or course of action. For decisions about your own situation, consult a qualified professional.