Definition

In accounting, the money your company owes but hasn't paid yet—basically corporate IOUs sitting on the balance sheet like financial landmines. Also known as "accounts payable," these are the bills that make CFOs wake up in cold sweats. The bigger this number gets, the more creative the excuses to vendors become.

Example Usage

Our accounts payable are through the roof this quarter, so we're stretching payment terms to 90 days and praying suppliers don't notice.

Source: Common accounting terminology

Related Terms

Beginner

aging schedule

A report categorizing accounts receivable by how long they've been outstanding, typically in 30-day buckets. It's a snapshot of who owes you money and which customers are slow payers or potential deadbeats.

💰 Finance / Accounting
Intermediate

contra account

An account that offsets another account on the balance sheet, like accumulated depreciation playing bad cop to your asset's good cop. It reduces the value of the related account without actually touching it.

💰 Finance / Accounting
Beginner

accounting

The ancient art of recording, classifying, and summarizing financial transactions, then presenting them in ways that either enlighten or confuse everyone involved. It's the language of business, spoken fluently by people who find tax codes exciting. Keeps companies legal, investors informed, and provides employment for millions who really, really like spreadsheets.

💰 Finance / Accounting
Beginner

cashflow

The lifeblood of any business—the actual money moving in and out, as opposed to imaginary 'revenue' on paper. You can be profitable on an income statement and still go bankrupt if this isn't positive, which is why CFOs wake up in cold sweats thinking about it. It's the difference between looking rich and actually being able to pay your bills.

💰 Finance / Accounting
Intermediate

disburse

The fancy way to say 'fork over the cash,' typically used when governments or large organizations finally release funds they've been sitting on. It's the financial equivalent of a parent grudgingly handing over allowance money. Always sounds more dignified than 'pay out,' which is exactly why accountants love it.

💰 Finance / Accounting
Intermediate

normalizing adjustments

Changes made to financial statements to remove one-time or unusual items and show what 'normal' operations look like, assuming such a thing exists. It's the accounting version of 'this isn't my usual performance.'

💰 Finance / Accounting

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