What is bills payable

Question

Accepted Answer

Bills payable refers to the amount of money a company owes to its suppliers or vendors for goods or services received but not yet paid for.

Bills payable is a liability account in the company's balance sheet.
It represents the amount of money the company owes to its suppliers or vendors.
The bills payable amount includes the cost of goods or services received but not yet paid for, as well as any applicable taxes or fees.
Bills payable is typically paid within a specified period of time, such as 30 days or 60 days.
Examples of bills payable include invoices from suppliers for raw materials, utilities, rent, and other expenses.

Accepted Answer

Bills payable refers to the amount of money a company owes to its suppliers or vendors for goods or services received but not yet paid for.

Bills payable is a liability account in the company's balance sheet.
It represents the amount of money the company owes to its suppliers or vendors.
The amount is recorded when the company receives the goods or services but has not yet paid for them.
Examples of bills payable include invoices for raw materials, utilities, rent, and other expenses.
The company must pay the bills payable within a certain period of time to avoid late fees or penalties.

Top Gallagher Process Associate interview questions & answers