Nov 5, 2025

Accounts Payable

• Accounts Payable is the money a business owes to its suppliers for goods or services that it has received but not yet paid for.

How do I remember it?

• Think of Accounts Payable as “Bills my business still needs to pay.”

Real world example

• A marketing agency orders $5,000 of new laptops from a supplier on credit.

The laptops arrive today.

The invoice says payment is due in 30 days.

Until the agency pays, that $5,000 is recorded as Accounts Payable, money the business owes for goods it already received.