What category of account is accounts payable?
Friday, March 24, 2023
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Question: What category of account is accounts payable?
Accounts payable is a liability account. It represents the amount of money a business owes to its suppliers or creditors for goods or services that have been received but not yet paid for. This means that accounts payable is money that the business owes to others and is obligated to pay in the future. As a liability account, accounts payable is recorded on the balance sheet and reflects the amount of short-term debt that the business owes.
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