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so you may have heard of accounts receivable but whatamp;#39;s accounts payable accounts payable or ap is the amount of a companyamp;#39;s total invoices currently waiting to be paid these invoices are from various vendors for the products and services that were recently delivered theyamp;#39;re usually due to be paid back to the vendor in 15 30 or 45 days after receiving the invoice accounts payable falls under current liabilities on a balance sheet and since ap is essentially a short term loan companies look at ap as a source of cash so if a company needs cash they may try to lengthen the payback period but they do so at the risk of tarnishing the relationship with the vendor if a company goes beyond the payback term limit the vendor could decide to add a late fee clause to the next invoice or decide not to do business with the company at all in the future if youamp;#39;re looking to dive deeper into more financial terms check out the link to the blog post in the descript
