The debt created by a business when it borrows from a vendor or supplier is called a(n):
A) account payable.
B) contingent liability.
C) intangible asset.
D) account receivable.

Question

Quizplus · Accepted Answer

An account payable is the debt created by a business when it borrows from a vendor or supplier. It represents the money owed to those who have supplied goods or services on credit, but which have not yet been paid for.

The Debt Created by a Business When It Borrows from a Vendor