Hide

FocusBar

FeedbackFeedback
Subscribe to Premium Member
0.15 (1y: -94%)
Market Cap 6.4 M P/E(ttm)
Enterprise Value P/B
SFPI- OTCBB (USA)
Santa Fe Petroleum Inc
Not Rated
Top Ranked Predictable Companies
$0.15
Switch to:

Definition

Accounts Payable is money owned by a business to its suppliers. It is a liability that expected to be paid by the business within 12 months.

From a cash flow point of view, if a company’s accounts payable increase, it means that the company’s cash level is higher by the same amount. This is because accounts payable are eventually paid in the cash. The slower accounts payable are paid, the longer the company has use of the cash. Therefore, accounts payable contribute positively to cash flow.

A company’s accounts payable are reflected on its suppliers’ balance sheet as Accounts Receivable.

Related Terms

Accounts Receivable

Financial Dictionary

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK