Now let's go back to the definition of debt. From the American Heritage Dictionary -debt n. - 1. Something owed, such as money, goods, or service. 2. An obligation or liability to pay or render something to someone else.<><>I don't recall the american heritage dictionary as the standard for accounting practice.Accounts payable is not debt but is a liability. Personal finance example: I renew my subscription to business week. I send in a card extending my subscription two more years at the cost of $40. I now have a $40 increase in accounts payable. A month later I receive the bill for the subscription and put it on my visa which carries 8% interest. My accounts payable decreases by $40 and my short term debt increases by the same.What on earth is so tough to understand about that?scm
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