An Accounts Payable normally results from which of the following transactions?
A) Purchasing accounts for cash.
B) Purchasing property, plant and equipment on credit.
C) Purchasing goods and services from suppliers on credit.
D)All of the above.

Question

Quizplus · Accepted Answer

Accounts Payable is a liability that arises when a company purchases goods and services from suppliers on credit, which is option C. Option A, purchasing accounts for cash, does not result in an accounts payable since there is no credit involved. Option B, purchasing property, plant and equipment on credit, would result in a different liability account called "Notes Payable" rather than accounts payable. Therefore, the correct choice is C.

An Accounts Payable Normally Results from Which of the Following