What is "Cash recorded in A/P"?

Intern in PE - LBOs

Hi everyone,
In a buyout, what is "Cash recorded in A/P"? It seems to mean cash recorded in accounts payables and is treated as cash, but I'm just not sure if I understand why there would be cash recorded in accounts payable? What does it do exactly?

Thanks!

Comments (2)

Mar 25, 2020

Havent seen this before, but I would guess overdue invoices. If you would have paid them on time, A/P and cash would be lower, therefor both A/P and cash are overstated.

Mar 25, 2020
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