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 English dictionary.      Английский словарь Британика.