Final answer:
Accounts payable refer to obligations owed by the business and are classified as a liability.
Step-by-step explanation:
The accounts payable refer to obligations owed by the business and are classified as a(n) liability.
Accounts payable are the amounts owed by a business to its suppliers and vendors for goods or services purchased on credit. They represent the company's short-term liabilities and are recorded on the balance sheet under the liabilities section.
For example, if a business purchases inventory from a supplier and receives an invoice with terms to pay within 30 days, the amount owed to the supplier would be considered accounts payable. This amount will be recorded as a liability on the balance sheet until the business makes the payment.