Accounts payable are short term debts that a business owes to its creditors for its products and services.
Accounts payable (also known as "Payables" or AP) is found in the balance sheet and it reflects tasks like purchase orders, collecting credit card receipts, organizing account withdrawals, and keeping the general ledger, and auditing expense reports. When accounts payables are paid off, it represents a negative Cash flow for the company. When companies are unable to meet their accounts payable obligations, they are considered to be in default.
Examples of account payables are