Accounts payable are?

Accounts payable are?

• A. Current liabilities
• B. Accounts payable
• C. Unearned revenue
• D. Accounts receivable

Answer: (B)

Accounts payable are the short-term obligations a business must pay to suppliers for purchases made on credit. They sit on the balance sheet as current liabilities because they are typically due within one year or the operating cycle. This distinguishes them from accounts receivable, which are assets representing money owed to the company by customers, and from unearned revenue, which is cash received before delivering goods or services. While current liabilities is the broader category that includes many short-term obligations, accounts payable is the specific line item that captures what the company owes to its suppliers.

Accounts payable are the short-term obligations a business must pay to suppliers for purchases made on credit. They sit on the balance sheet as current liabilities because they are typically due within one year or the operating cycle. This distinguishes them from accounts receivable, which are assets representing money owed to the company by customers, and from unearned revenue, which is cash received before delivering goods or services. While current liabilities is the broader category that includes many short-term obligations, accounts payable is the specific line item that captures what the company owes to its suppliers.