Is Accounts Payable An Asset?
Here we will consider the very basic type of question regarding Accounts Payable / Creditors that is “Is Accounts Payable An Asset”? You may also be interested in “ Is Accounts Receivable An Asset ” The answer to this question is that Accounts Payable or Creditors is Not An Asset but a Current Liability because it is the amount payable to the Company for the goods purchased on Credit Basis or Serviced Received from Company on Account. Examples include Goods Purchased From Suppliers On Credit Basis. Services like Internet Bills, Telephone Bills received from Company and untill payments will be made at the end of month during the Current Accounting Period or Accounting Cycle, these payments are still to be considered as Accounts Payable for the company receiving the services. Accounts Payable is a Current Liability which must be paid by the Company to Suppliers from whom the company purchased goods on credit or services received from the s...