Amounts owed to vendors for purchases on credit are called ________.Amounts due from customers for credit sales are called ________.
A) accounts payable; notes receivable
B) notes payable; notes receivable
C) accounts payable; accounts receivable
D) debt payable; debt receivable

Question

Quizplus · Accepted Answer

Accounts payable refers to the amount owed to vendors for purchases on credit, while accounts receivable refers to the amount due from customers for credit sales. Therefore, C is the correct answer. A and B are incorrect choices because notes receivable and notes payable refer to specific types of financial instruments, not general account titles. D is not a commonly used term in accounting.

Amounts Owed to Vendors for Purchases on Credit Are Called