The "trade payables" account should generally be used only for trade payables (obligations owed to suppliers in the normal course of business) which relate to the purchase of goods and services.

Question

Quizplus · Accepted Answer

Trade payables refer to the amounts owed to suppliers for the purchase of goods and services in the normal course of business. Therefore, the "trade payables" account should only be used for such obligations. Other types of payables, such as taxes or loans, should be recorded in separate accounts.

The "Trade Payables" Account Should Generally Be Used Only for Trade