On 2 January 2014 Fife Corp buys goods from O'Brien and agrees to pay for them within 60 days. On the balance sheet for Fife Corp at 2 January 2014 the amount owing to O'Brien would be reported as:

Question

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When Fife Corp buys goods from O'Brien but agrees to pay them at a later date, it is considered a liability for Fife Corp. Specifically, it is an account payable which would be reported on the balance sheet as a current liability.

On 2 January 2014 Fife Corp Buys Goods from O'Brien