Question

What are accounts payable?

Responses



a company’s illiquid assets


a company’s bank accounts


amounts of money a company owes other companies


lines of credit for customers

Answer 1

Accounts payable refer to the amounts of money that a company owes to other companies. It is a liability that a company has incurred in the course of its business operations. Accounts payable typically arise from the purchase of goods or services on credit from suppliers or vendors. These liabilities are recorded in a company's financial statements as a current liability, and they are typically paid off within a short period of time, such as 30 to 90 days.