What is an account payable?
A)It is a liability for goods or services purchased on credit and supported by a written agreement.
B)It is a liability for goods or services purchased on credit and supported by the credit standing of the purchaser.
C)It is an amount of money to be received from a supplier.
D)It is an asset arising from the sale of goods or services on credit.

Question

Quizplus · Accepted Answer

An account payable is a liability that arises when a company purchases goods or services on credit, relying on the credit standing of the purchaser rather than a formal written agreement.

What Is an Account Payable