Question

The bills a firm owes to its vendors, lenders, and other parties are called __________?

1) accounts receivable
2) economic order quantity
3) accounts payable
4) liquidity
5) working capital

Answer 1

The bills a firm owes to its vendors, lenders, and other parties are known as accounts payable, representing liabilities on the balance sheet.

Step-by-step explanation:

The bills a firm owes to its vendors, lenders, and other parties are called accounts payable. This is a liability on the balance sheet and represents the amount of money a company owes to its suppliers and creditors for goods and services received. An account receivable, in contrast, refers to the money that others owe to the firm for goods or services it has sold to them.

Working capital, is the difference between a company's current assets and current liabilities, indicating its operational efficiency and short-term financial health.

The bills a firm owes to its vendors, lenders, and other parties are called accounts payable. These are the liabilities that a firm has to pay within a specific period of time, typically within 30 days. It represents the money the company owes to others and is listed on the balance sheet as a current liability.

Therefore the correct answer is 3) accounts payable.