Definition

In accounting, the money your company owes but hasn't paid yet—basically corporate IOUs sitting on the balance sheet like financial landmines. Also known as "accounts payable," these are the bills that make CFOs wake up in cold sweats. The bigger this number gets, the more creative the excuses to vendors become.

Example Usage

Our accounts payable are through the roof this quarter, so we're stretching payment terms to 90 days and praying suppliers don't notice.

Source: Common accounting terminology

Related Terms

Beginner

earnings call

A quarterly conference call where executives present financial results to analysts and investors, then spend an hour tap-dancing around difficult questions. It's theater performed by people who memorized the phrase 'we remain cautiously optimistic.'

💰 Finance / Accounting
Beginner

financing

The art of obtaining money for a venture, purchase, or operation, typically through loans, investments, or creative accounting that would make your grandmother worry. In real estate and business, it's the difference between owning something outright and owing a bank for the next 30 years. Everyone says they're 'exploring financing options' which usually means 'we're broke but optimistic.'

💰 Finance / Accounting
Beginner

dividend

That magical quarterly payment when a company actually shares its profits with shareholders instead of hoarding every penny for executive bonuses. In math class, it's the number getting divided; in real life, it's your reward for believing in capitalism. Think of it as the corporate world's version of saying 'thanks for believing in us' with actual money instead of just pizza parties.

💰 Finance / Accounting
Intermediate

commercial paper

Short-term unsecured promissory notes issued by corporations to fund immediate needs, typically maturing in under 270 days to avoid SEC registration. Think of it as corporate IOUs for companies with good enough credit that people actually accept them.

💰 Finance / Accounting
Intermediate

undervaluing

The accounting sin of assigning too low a value to an asset, which is either conservative prudence or creative bookkeeping depending on who's doing it and why. Companies engage in undervaluing to lower tax bills or appear more modest, while investors do it to snag bargains. It's the opposite of the more common corporate tendency to overvalue everything and pretend problems don't exist.

💰 Finance / Accounting
Intermediate

Earnings Per Share

A company's profit divided by the number of shares, giving you the illusion that you personally earned that amount per share you own. It's the finance world's way of making enormous numbers feel personal and tiny numbers feel acceptable.

💰 Finance / Accounting

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