Liabilities incurred when goods or supplies are purchased on credit are know as:

Name: Liabilities incurred when goods or supplies are purchased on credit are know as:
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Question

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Accounts payable are the liabilities that a company incurs when it purchases goods or supplies on credit. The other options, liabilities payable and trade credits, are not commonly used terms for this type of liability. Accounts receivable, on the other hand, are assets that a company has when it is owed money by its customers.

Liabilities Incurred When Goods or Supplies Are Purchased on Credit