Meaning of ACCOUNT PAYABLE in English
- ACCOUNT PAYABLE
Any amount owed as the result of a purchase of goods or services on a credit basis.
Although a firm making a purchase issues no written promise of payment, it enters the amount owed as a current liability in its accounts. Companies often incur this type of short-term debt in order to finance their inventories, especially in industries where inventory turnover is rapid. See also account receivable .
Britannica Concise Encyclopedia. Краткая энциклопедия Британика. 2012