Accounts Payable (AP)
Definition:
The money a company owes to its suppliers for goods or services purchased on credit.
AP also refers to the department or team responsible for processing and paying invoices from suppliers.
Example:
Acme Corporation received an invoice from Atlas Supplies for $10,000 worth of office equipment. The Accounts Payable team at Acme Corporation is responsible for verifying the accuracy of the invoice, ensuring the goods were received, and processing the payment within the agreed-upon credit terms.