MANAGEMENT

Detailed explanation-1: -Accounts Payable is a short-term debt payment which needs to be paid to avoid default. Description: Accounts Payable is a liability due to a particular creditor when it order goods or services without paying in cash up front, which means that you bought goods on credit.

Detailed explanation-2: -Accounts payable. Found within a company’s general ledger, accounts payable represents a short-term debt that a business owes to its creditors, suppliers and others.

Detailed explanation-3: -Accounts payable is a liability since it is money owed to creditors and is listed under current liabilities on the balance sheet. Current liabilities are short-term liabilities of a company, typically less than 90 days. Accounts payable are not to be confused with accounts receivable.

Detailed explanation-4: -Short-term debt, also called current liabilities, is a firm’s financial obligations that are expected to be paid off within a year. Common types of short-term debt include short-term bank loans, accounts payable, wages, lease payments, and income taxes payable.

Detailed explanation-5: -Accounts payable (AP) refer to the obligations incurred by a company during its operations that remain due and must be paid in the short term. As such, AP is listed on the balance sheet as a current liability.