Is accounts payable is an example of liablity?

Answers

  • Réponse publiée par: Grakname

    Subject Economics

    Yes, accounts payable is an example of liablity. Accounts Payable will exists if the company purchases goods or services to its vendors on credit. This kind of payable is under current liabilities category since this is normally to be paid within normal operating cycle or within a year. Accounts Payable is considered as the most liquid current liabilities in the balance sheet.

    LIABILITy

    In accounting, liability is the payables or debts of a business to settle. This an obligation of the company to settle to another company. Liabilities have two main categories:

    1. Current Liabilities

    -these are payables,obligations or debts which are short-term payables that needs to be paid or settled by the business within a year.

    Some Examples of Current LiabilitiesAccounts PayableInterest PayableIncome Tax PayableAccrued ExpensesShort-term loans2. Non-Current Liabilities

    -these are payables, debts or obligations that are long-term liabilities that can be settle after a year or more than a year.

    Some Examples of Non-Current LiabilitiesBonds PayableLong-term Notes PayableDeferred Tax LiabilitiesMortgage Payable

    Further related topics about assets and liabilities

    What is the opposite of assets

    For related topics about fundamental accounting equation

    Code: 11.11.3.7.

  • Réponse publiée par: molinamaureen080693
    Yes, accounts payable is an example of a liability.

    In accounting, accounts payable is the obligations of the business to pay something for something they have purchased but not yet paid. It is a liability as the business have the obligation to pay something to others.

    To know more about liabilities, just continue on reading below.

    Liabilities

    In accounting, liabilities are the resources that a company owes to another business or people.

    Two types of liabilities:Current liabilities - accountabilities that must be paid or dealt within a year or operating cycle of a business.Non-current liabilities - accountabilities that must be paid but not within a year or operating cycle of a business.Examples of current liabilities:Accounts PayableNotes PayableUnearned RevenuesExamples of non-current liabilities:Mortgage PayableBonds Payable

    #answerForTrees

  • Réponse publiée par: nicole8678

    Subject Economics

    No, accounts payable is an example of liablity. Accounts payable is a liability rather than an asset. Accounts Payable is the obligation of the company to pay within normal operating cycle due to purchase of goods or services to its vendors on credit.

    LIABILITy

    In accounting, liability is the payables or debts of a business to settle. This an obligation of the company to settle to another company. Liabilities have two main categories:

    1. Current Liabilities

    -these are payables,obligations or debts which are short-term payables that needs to be paid or settled by the business within a year.

    Some Examples of Current LiabilitiesAccounts PayableInterest PayableIncome Tax PayableAccrued ExpensesShort-term loans2. Non-Current Liabilities

    -these are payables, debts or obligations that are long-term liabilities that can be settle after a year or more than a year.

    Some Examples of Non-Current LiabilitiesBonds PayableLong-term Notes PayableDeferred Tax LiabilitiesMortgage Payable

    Further related topics about assets and liabilities

    What is the opposite of assets

    For related topics about fundamental accounting equation

    Code: 11.11.3.7.

  • Réponse publiée par: enrica11
    No, accounts payable is not an asset. It is a liability.

    In accounting, accounts payable are the obligations of the business to pay its credit to where she creditted. Since it is an accountability to pay something you have borrowed or creditted, it is classified as a liability.

    To know more about assets and liabilities, just continue on reading below.

    Assets

    In accounting, assets are the resources that a company owns and has monetary value.

    Two types of asset:Current asset - assets that are usable or convertible to cash within a year or operating cycle of a business.Non-current asset - assets that can't be used or converted to cash within a year or operating cycle of a business.Examples of current asset:Cash and cash of non-current asset:LandEquipment/MachinesIntangible assetsLiabilities

    In accounting, liabilities are the resources that a company owes to another business or people.

    Two types of liabilities:Current liabilities - accountabilities that must be paid or dealt within a year or operating cycle of a business.Non-current liabilities - accountabilities that must be paid but not within a year or operating cycle of a business.Examples of current liabilities:Accounts PayableNotes PayableUnearned RevenuesExamples of non-current liabilities:Mortgage PayableBonds Payable

    #answerForTrees

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