Question

List the three main types or groups of accounts payable and give one example of an accounts payable item for each group.

1) Trade Payables - Example: Payment to suppliers for goods or services
2) Accrued Expenses - Example: Unpaid salaries or wages
3) Notes Payable - Example: Loan from a bank

Answer 1

The three main types of accounts payable are trade payables, accrued expenses, and notes payable. Examples include payments to suppliers, unpaid salaries or wages, and loans from a bank.

Step-by-step explanation:

The three main types or groups of accounts payable are:

1. Trade Payables: These are the unpaid invoices or bills owed to suppliers for goods or services provided. An example of a trade payable item is a payment to suppliers for goods or services.
2. Accrued Expenses: These are expenses that have been incurred but not yet paid for. An example of an accrued expense item is unpaid salaries or wages.
3. Notes Payable: These are formal agreements to pay back a specific amount of money, often with interest, by a specified date in the future. An example of a notes payable item is a loan from a bank.