Creditors or Accounts Payable Definition

Definition

The persons or company from whom the goods or services are purchased on credit and to whom the amount is payable are called creditors. The accounting process often referred to as Accounts Payable is the system used to manage creditor accounts.

Example

John Sold goods to Harry on credit for $500, John is a Creditor of Harry.

True Tamplin, BSc, CEPF®

About the Author
True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website, view his author profile on Amazon, or check out his speaker profile on the CFA Institute website.