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Is Accounts Payable An Asset or a Liability?

1 Answer

4 votes

Answer:

Liability

Step-by-step explanation:

Accounts payable represents payments that a business expects to make in the coming days. They are goods and services that a business has obtained on credit from suppliers but not yet paid for. The business or individual has already consumed the service or received the good; only the payment part remains.

Accounts payable are more of short term debts. They are money owned to others, hence liabilities.

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