English Lexicon

Accounts Payable

/əˈkaʊnts ˈpeɪ.ə.bəl/
nounCEFR B2 (Upper)Top #1500 frequency
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Comprehensive Definitions & Senses

2 senses
As noun
  1. 1

    The amount of money a company owes to its suppliers for goods and services purchased on credit.

    "The company's accounts payable increased significantly after the recent bulk purchase of inventory."
  2. 2

    A liability account that represents the company's obligation to pay off short-term debts to its creditors.

    "Effective management of accounts payable can improve a company's cash flow."

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Antonyms & Contrasting Words (1)

Linguistic Origin & Historical Etymology

The term 'accounts payable' originates from the combination of 'accounts', derived from the Latin 'computare', meaning to count or calculate, and 'payable', which comes from the Old French 'paier', meaning to pay. The phrase has evolved in the context of financial accounting since the 19th century to denote obligations to pay off short-term debts to creditors.

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