Final answer:
Accounts payable is a type of liability, which is a debt or obligation that a company owes and must repay. Liabilities, alongside assets, are recorded on a balance sheet, and for a bank, the difference between assets and liabilities is referred to as bank capital. The correct option is C. accounts payable.
Step-by-step explanation:
Among the options given, accounts payable is a type of liability. A liability is defined as a debt or something that you owe.
For example, when a company borrows money, whether from a bank or through suppliers via credit terms, it creates a financial obligation that it must pay back in the future.
These obligations are recorded on the balance sheet. On the other hand, an asset is something of value that a firm or an individual owns, such as cash or a home.
When considering a bank's balance sheet, an understanding of the asset-liability time mismatch is important. Customers can withdraw a bank's liabilities, such as deposits, in the short term while the bank's loans, its assets, are repaid over a longer term. The bank's net worth, known as bank capital, is the difference between its assets and liabilities. The correct option is C. accounts payable.