Accounts payable are:
A)Amounts owed to suppliers for products and/or services purchased on credit.
B)Long-term liabilities.
C)Estimated liabilities.
D)Not usually due on specific dates.
E)Always payable within 30 days.

Question

Quizplus · Accepted Answer

Accounts payable refers to the amounts a business owes to its suppliers for products and/or services purchased on credit. It is a short-term liability and is usually due within 30 to 90 days, although this may vary depending on the specific terms of the agreement between the business and the supplier. Accounts payable is not considered a long-term liability, and it is not an estimated liability – it is a known amount that the business will have to pay at a certain point in time. While accounts payable are not usually due on specific dates, they are typically subject to payment terms negotiated between the business and the supplier.

Accounts Payable Are