asked 223k views
4 votes
Is Accounts Payable An Asset or a Liability?

1 Answer

4 votes

Answer:

Liability

Step-by-step explanation:

Accounts payable represents payments that a business expects to make in the coming days. They are goods and services that a business has obtained on credit from suppliers but not yet paid for. The business or individual has already consumed the service or received the good; only the payment part remains.

Accounts payable are more of short term debts. They are money owned to others, hence liabilities.

answered
User IssamTP
by
8.5k points

No related questions found

Welcome to Qamnty — a place to ask, share, and grow together. Join our community and get real answers from real people.