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Investments glossary

Accounts Payable (AP)


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Quotes of the day:

All that is gold does not glitter; not all those that wander are lost.

— J. R. R. Tolkien, The Fellowship of the Ring, 1954

Accounts payable (AP) is an account within the general ledger that represents a company’s obligation to pay off a short-term debt to its creditors or suppliers. Another common usage of AP refers to the business department or division that is responsible for making payments owed by the company to suppliers and other creditors.

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