Which of the following statements regarding accounts payable is false?
A)Accounting for accounts payable is really just the flip side of accounts receivable.
B)Accounts payable arise when a business purchases goods or services on credit.
C)Accounts payable arise when a business promises to purchase goods or services in the future.
D)Accounts payable seldom require the payment of interest.

Question

Quizplus · Accepted Answer

Accounts payable arise when a business has already received goods or services on credit, not when it promises to purchase them in the future (which would be a purchase order).

Which of the Following Statements Regarding Accounts Payable Is False