Accounts Payable (AP) is an accounting term that refers to the amount of money that a company owes to its creditors or suppliers for goods or services that have been purchased on credit. It is a liability on the company’s balance sheet and represents the short-term debts that must be paid off within a specified period of time. 

AP is typically recorded as a current liability and is an important component of a company’s overall financial health. 

The AP process involves recording, verifying, and paying invoices and bills received from vendors and suppliers. It is an essential part of the overall accounts payable process and is closely monitored by businesses to ensure timely payment and maintain good relationships with their creditors.