Accounts payable is considered a [blank].
A)spontaneous liability
B)temporary financing source
C)permanent financing source
D)both A and B

Question

Quizplus · Accepted Answer

Accounts payable is considered a spontaneous liability because it arises naturally from the operations of the business, such as purchasing inventory on credit. It is also seen as a temporary financing source because it represents short-term obligations that the company is expected to pay off in the near future.

Accounts Payable Is Considered a [Blank]