Which of the following applies to Accounts Payable?
A) They can be outstanding for more than one year.
B) They charge interest.
C) It is an amount a business is obligated to repay.
D) They are documented using formal documents.

Question

Quizplus · Accepted Answer

Accounts Payable are amounts owed by a business to its suppliers for goods or services received. This is an obligation that needs to be repaid in a timely manner, typically within 30 to 60 days. A and B are not accurate as Accounts Payable are not meant to be outstanding for more than the agreed upon payment terms, and generally do not charge interest unless there is a late payment. D is partially accurate as Accounts Payable are documented, but not necessarily always with formal documents. So the best choice is C.

Which of the Following Applies to Accounts Payable