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Define the term Accounts Payable

Accounts Payable: It is an accounting entry which symbolizes an entity's obligation to pay off a short-term debt to its creditors. Accounts payable entry is found on balance sheet beneath the heading current liabilities. Accounts payable are frequently termed to as "payables".

The other common usage of AP (Accounts payable) refers to a business department or division which is responsible for making payments owed by the company or organization to the suppliers and other creditors.

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