Accounts Payable

Trade Credit Obligations

Accounts payable represent amounts owed to suppliers for goods and services purchased on credit during normal business operations. These liabilities usually do not bear explicit interest and are among the most common current liabilities reported by businesses.

• Arise from routine business purchases.
• Usually supported by invoices.
• Normally due within 30 to 90 days.
• Reported at the amount expected to be paid.