Q306
A company purchases goods but does not pay payments to suppliers immediately and record them as
A.
account payable
AnswerB.
account receivable
C.
current liabilities
D.
accumulated liabilities
Answer: Option A
Solution
Answer: Option A
Solution:
A company purchases goods but does not pay payments to suppliers immediately and record them as account payable. Accounts payable (AP) is money owed by a business to its suppliers shown as a liability on a company's balance sheet. It is distinct from notes payable liabilities, which are debts created by formal legal instrument documents.