"Operating cash, inventory, and accounts receivable constitute typical current assets. Current liabilities consist of accounts payable, such as taxes, wages, rents, interest payable, and short-term debt."
Accounts payable
Definition
Short-term debt that a company owes to its suppliers for products received before payment is made. Accounts payable entries are listed under "Current Liabilities" in the business' balance sheet and the items are removed once the account has been paid.
Illustrative caselaw
See, e.g. United States v. Richman, 93 F.3d 1085 (2d Cir. 1996).
See also
Definition from Nolo’s Plain-English Law Dictionary
Money owed by a business to suppliers, vendors, employees, banks, landlords, and other creditors. On a company's balance sheet, accounts payable are categorized as liabilities.
Definition provided by Nolo’s Plain-English Law Dictionary.
August 19, 2010, 5:10 pm
