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An account payable is:
A)debt minus equity
B)money the company owes a bank for funds it has borrowed
C)money owed to the company by a customer when the customer makes a purchase on credit
D)money owed by the company to a supplier when the company purchases using credit

Respuesta :

amanarsalan

Answer:

B) Money the company owes a bank for funds it has borrowed.

D) Money owed by the company to a supplier when the company purchases using credit.

Explanation:

A)

Debt minus Equity is incorrect. As Debt plus Equity is equal to Assets in Accounting Equation. So Account Payable can be a part of Total Debt but Debt minus Equity is not accurate.

B)

An account payable is money the company owes a bank for funds it has borrowed.

C)

An Account Receivable is the money owed to the company by a customer when the customer makes a purchase on credit.

D)

An account payable is money owed by the company to a supplier when the company purchases using credit.

Officialalehpeter

Answer:

D)money owed by the company to a supplier when the company purchases using credit

Explanation:

Accounts payable (AP) is money owed by a business to its suppliers shown as a liability on a company's balance sheet. It is distinct from notes payable liabilities, which are debts created by formal legal instrument documents.

Accounts payable are short-term liabilities relating to the purchases of goods and services incurred by a business. Examples of accounts payable include accounting services, legal services, supplies, and utilities. Accounts payable are usually reported in a business' balance sheet under short-term liabilities.

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