Ans: Account payable is the exact opposite of account receivable. This is the money that is owed to the company. The account payable line item will arise when the company receives the service or product before paying for it. The account payable is one of the largest of the current liabilities in a company's balance sheet. This is because the company constantly orders new products or pays off the vendors and suppliers for the merchandise and services. Any well-managed company will aim to keep the account payable high to cover its existing inventory. The existing inventory is included in the balance sheet as assets.