Accounts payable is a financial accounting term that refers to the current liabilities of a company for any outstanding obligations they have to another party. This generally occurs when the business owner buys goods or supplies needed to run his business and does so on his own good name, without having to sign a promissory note. Paying on an accounts payable debt will decrease the amount of available cash and the accounts payable outcome. Increases in accounts payable occur for other reasons.
