What is Accounts Payable?
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Accounts Payable is an accounting term. It can also be called Creditors or Trade Creditors.
Accounts Payable refers to the money a business owes to its suppliers for goods or services they have ordered but not yet paid for.
It represents the company’s short-term debts that need to be paid within a specific period.
The figure is used most regularly at the end of the financial year to show what was owed to suppliers as at the year end date.