Accounts Payable VS Expense
Here we will study about the Question that is asked in the field of Accounting that, “Is Accounts Payable An Expense"? You may also be interested in “ Is Accounts Payable An Asset ”? The answer to this question is very easy and that is “No”, because Accounts Payable is the amount of debt or obligation payable by the business to outsiders (Suppliers, Banks, Financial Institutions, etc) for the goods purchased or services received on account.ads Accounts Payable VS Expense Expenses are the costs incurred for the purpose of earning revenue for the business while Current liability is the amount payable at future date. Expenses have no balance and closed to Income Statement or Profit And Loss Account while Accounts Payable / Creditor is Transferred to Balance Sheet untill it is fully paid. When Accounts Payable is Created, A Current Liability is created which is payable by the business. When the amount is repaid to suppliers or banks, then Accounts...