Accounts payable

Imagine you have a lemonade stand and you want to make and sell lemonade. You need to buy lemons, sugar, and cups from the store. But you can't afford to pay for everything upfront, so you ask the store to let you pay them back later.

That's basically what accounts payable is. It's the money you owe to other people or businesses for things you bought but didn't pay for yet. Like you owe your friend for a toy they bought for you, or your parents owe the electric company for the electricity they used.

It's important to keep track of accounts payable because you need to know when to pay people back, and also to make sure you have enough money to pay them. You don't want to owe too much money and not be able to pay it back later.

As you grow and expand your lemonade stand, you'll have more accounts payable, like to suppliers who provide your stands or your marketing materials. But it's important to always keep track of what you owe so you don't end up in trouble.