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meaning of accounts payable
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Answer Posted / sonia gupta
Accounts payable is a file or account that contains money
that a person or company owes to suppliers, but has not
paid yet (a form of debt). When you receive an invoice you
add it to the file, and then you remove it when you pay.
Thus, the A/P is a form of credit that suppliers offer to
their purchasers by allowing them to pay for a product or
service after it has already been received.
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