Payable definition

A payable is an amount of funds owed by a buyer to a seller. The presence of a payable implies that a sale was made on credit, with a due date by which payment must be made. A payable is recorded within the accounts payable account, which is presented as a current liability on the balance sheet of the buyer. Conversely, the seller records this amount as a receivable, which is recorded as a current asset on its balance sheet.

Related Courses

Optimal Accounting for Payables 
Payables Management