Amounts owed for products or services purchased on account are called ________.
A) accounts payable
B) unearned revenue
C) accrued expense
D) warranty payable

Question

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Accounts payable represent the amounts owed by a company to its suppliers or vendors for goods or services purchased on credit or on account. They are considered liabilities on the company's balance sheet and must be paid off within a certain period of time. The other options, unearned revenue, accrued expense, and warranty payable, refer to different types of liabilities that are not related to amounts owed for purchased products or services.

Amounts Owed for Products or Services Purchased on Account Are