Which term is used for debts that a business owes its creditors?

The term "Accounts Payable" refers specifically to the obligations a business has to its creditors, representing money that is owed for goods and services purchased on credit. This includes any outstanding invoices or bills that have not yet been paid, making it a crucial component of a company's financial management. Effective handling of accounts payable is essential for maintaining healthy cash flow and managing vendor relationships. It ensures that a business meets its short-term financial obligations while optimizing expenses.

In contrast, "Accounts Receivable" pertains to the money owed to a business by its customers for goods or services provided, which is essentially the opposite of accounts payable. "Account Receivable Entry" may refer to the recording of transactions related to accounts receivable, while "Account Takeover" is a security term related to unauthorized access to a financial account. Thus, "Accounts Payable" accurately identifies the debts that a business owes its creditors.