Accounts Payable Definition

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	A Few Related Terms


	Accts Receivable Balance Sheet Income Statement Depreciation


	Accounts Payable Term category: Finance/Accounting In 10 words or less: What a company currently owes to its creditors.


	Definition: Accounts payable refers to the amount of money owed to a creditor for goods and services. StockJargon Advice: Accounts payable are current liabilities because they must be paid within a year (often suppliers have far stricter time schedules). In order to maximize value, companies try to postpone paying their suppliers for as long as possible. Analysts examine accounts payable along with current assets like cash in order to determine if the company has enough money to pay off its short- term obligations.


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	Related Books


	The Interpretation of Financial Statements by Benjamin Graham How to Use Financial Statements by James Bandler How to Read a Financial Report by John A. Tracy Finance for Non-financial Managers by Gene Siciliano


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