A surfboard manufacturer orders 100 units of fiberglass material and promises to pay the supplier at a later date. The surfboard manufacturer will record the amount to be paid as

Question

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The surfboard manufacturer will record the amount to be paid as accounts payable, which is money an organization owes to suppliers for goods and services. Just as accounts receivable must be actively managed to ensure proper cash collections, so too must accounts payable be managed to make the best use of this important liability.

A Surfboard Manufacturer Orders 100 Units of Fiberglass Material and Promises