What Are Accounts Payable (AP)?

Accounts Payable is an accounting term that represents a company's short-term debt. It is found under Current Liabilities on a Balance Sheet and Operating Activities on the Cash Flow Statement. Accounts Payable can be thought of as an IOU and is typically used when the firm has received a service or product (i.e. parts order, management consultation etc) but has not yet paid for it.

**To learn more about this concept and become a master at DCF modeling, you should check out our DCF Modeling Course. Learn more here.** 

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