Explain about accounts payable

Question

Accepted Answer

Accounts payable is a financial term that refers to the money owed by a company to its suppliers or vendors for goods or services received.

Accounts payable is a liability on the balance sheet.
It represents the amount owed by a company to its creditors.
It includes invoices, bills, and other payment obligations.
Accounts payable is recorded when goods or services are received but payment has not yet been made.
It is an important aspect of cash flow management and working capital.
Example: If a company purchases inventory from a supplier on credit, the amount owed to the supplier becomes an accounts payable.
Example: When an invoice is received for services rendered by a consultant, the amount owed to the consultant becomes an accounts payable.

Accepted Answer

Accounts payable is the money as a liability for the company which is owed or borrowed from the supplier for the business .

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