What does "accounts payable" refer to in the purchasing process?

"Accounts payable" refers to the payment process for purchased goods, which is an essential part of managing a company's finances. It represents the amount of money a company owes to its suppliers for products and services that have been delivered but not yet paid for. When goods are purchased on credit, the liability is recorded in the accounts payable account until the payment is made.

This concept is crucial in the purchasing process as it affects cash flow management and the overall financial stability of an organization. Understanding accounts payable enables a company to manage its obligations effectively, ensure timely payments, and maintain good relationships with suppliers.

The other options focus on different aspects of the purchasing process, such as reception of goods, negotiation, and authorization, but do not capture the essence of what "accounts payable" specifically entails.