what is accounts payable
DEFINITION of 'Accounts Payable-AP'. An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable entry is found on a balance sheet under the heading current liabilities. Accounts payable are often referred to as payables. Another common usage of AP refers to a business department or division that is responsible for making payments owed by the company to suppliers and other creditors.