Accounts payable (A/Ps) is an accounting term that refers to money owed by a person or business to another person or business.

For example, if an office has bottled water delivered each week but doesn’t pay for it until the end of the month, the charge goes into accounts payable until the check is written. Employee paychecks also fall into the category of accounts payable until they are actually given out to employees.

Tags: A/P, A/R, accounts payable, accounts receivable, credit, debt