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Accounts Payable
Accounts payable are unpaid vendor balances for goods or services bought on credit.
Accounts payable are unpaid vendor balances arising from goods or services bought on credit. They represent money the organization owes, rather than money it expects to receive.
Property operations example: a repair invoice awaiting payment appears in the property’s vendor payable records. Match it with the invoice and later payment record when checking the balance.
Source: U.S. SEC, What is a balance sheet?.
Frequently Asked Questions
Are accounts payable the same as operating expenses?
No. An operating expense identifies a type of cost; accounts payable identify a vendor obligation that remains unpaid.
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