On 31 May 2018 Creature Comforts Ltd purchases gas heaters from their supplier and agrees to pay for them within 45 days. Assuming the amount is still owing at 30 June 2018, the balance sheet of Creature Comforts Ltd will report the amount owing as:

Question

Quizplus · Accepted Answer

The amount owing to the supplier for the purchase of gas heaters represents a liability for Creature Comforts Ltd and should be reported on the balance sheet as accounts payable. Accounts payable is a current liability account that represents amounts owed to suppliers or creditors for goods or services that have been received but not yet paid for.

On 31 May 2018 Creature Comforts Ltd Purchases Gas Heaters