Accounts Payable Questions And Answers
Here we discuss about Accounts Payable Questions And Answers. Is Accounts Payable An Asset or Liability No, Accounts Payable is not an Asset. Basically, when Entrepreneur buys goods on credit from the suppliers or sellers of the goods, then the amount that is payable to suppliers within the specified period of time creates a Liability for the firm. This Liability is called Current Liability or Accounts Payable as it is payable within Accounting Cycle or Accounting Period. So Accounts Payable is a Current Liability and not an asset. You may also be willing to Read “ Accounts Receivable Questions And Answers ” Is Accounts Payable A Liability or Expense Accounts Payable is not an expense because it is amount payable by the business to supplier or seller of goods at some future date within accounting cycle or current Accounting Period. Expenses are paid for the purpose of producing revenue. When Expenses paid liabilities are decreased. ...