Account Payable (Noun)
Meaning
A liability account showing how much is owed for goods and services purchased on credit; "the problem was to match receivables and payables in the same currency".
Classification
Nouns denoting natural processes.
Examples
- The company's account payable balance was high due to the large number of purchases made on credit in the previous quarter.
- The accountant spent hours reconciling the account payable ledger to ensure that all invoices were accurately recorded.
- The account payable department reviewed and approved all invoices before processing payment to the vendors.
- As a result of the economic downturn, the company struggled to pay its account payable on time, leading to strained relationships with suppliers.
- The financial statements showed a significant increase in account payable due to the company's decision to delay payment on several large invoices.