Question

Which of the following is an amount for products or services purchased on account? accounts payable, accrued expense, estimated warranty payable, or unearned revenue

Answer 1

Accounts Payable refers to the amount for products or services purchased on account.

Step-by-step explanation:

Let us consider, John is a businessman who owns a bedding mart. John would not purchase all his stock (products) with cash, instead John would buy most of his products in credit and he would repay them once the sale is sealed. Now, the credit which has to be paid by John is termed as “Accounts Payable”. It represents the short-term debt payable by the company or the proprietor