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(Accounting) Are balances owed to others for goods, supplies, or services purchased on open account. Accounts payable arise because of the time lag between the receipt of services or acquisition of title to assets and the payment for them. This period of extended credit is usually found in the terms of the sale. For example: 2/10 (2% discount for payment in 10 days), n/30 (the net is due in 30 days) or 1/10 (1% discount for payment in 10 days), E.O.M. (End Of Month) and is commonly 30 to 60 days.

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