Amounts that a business must pay in the future are known as
A) accounts receivable.
B) accounts payable.
C) capital.
D) expenses.

Question

Quizplus · Accepted Answer

Accounts payable represent the amounts that a business owes to its creditors or suppliers for goods or services received but not yet paid for. Accounts receivable represents the amounts that a business is owed by its customers for goods or services provided but not yet paid for. Capital represents the owner's investment or equity in the business. Expenses represent the costs incurred by a business in the course of earning revenue.

Amounts That a Business Must Pay in the Future Are