ACCOUNTING GLOSSARY
A/P
Accounts Payable
Amounts a business owes suppliers or vendors.
What does A/P mean?
Amounts a business owes suppliers or vendors. Professionals may calculate, document or apply this concept differently depending on the transaction, accounting method, lender policy and governing documents. Borrowers should confirm the precise definition used in any term sheet or agreement.
A/P in context
Unpaid fuel and maintenance invoices appear in accounts payable.
Why it matters in financing
A/P can influence how a lender, investor or advisor evaluates risk, pricing, structure, repayment capacity or transaction economics. It should be considered together with the complete financial picture rather than used alone.
Related accounting terms
Educational information only. This definition is general, may not match a particular lender or contract, and is not financial, accounting, tax or legal advice.