amount owed to another party. It is presented as a liability in the balance sheet. A payable is an item that is unpaid,whether or not due. If a payable is due in one year or less (e.g., accounts payable), it is a current liability. If it is to be paid in more than one year, it is shown as a long-term liability. One type of payable is accrued expenses payable (e.g., salaries payable). The failure to satisfy a payable on the due date may result in a penalty (interest) charge, creditor action against the firm (e.g., lawsuit), or in an extreme case, bankruptcy.