Question

Tyler is completing a balance sheet for his home improvement company. He must include the amounts he owes to suppliers for lumber, tools, equipment, and other materials that he purchased with credit. These liabilities are called_________.A. accrued expenses.B. accounts receivable.C. inventory.D. accounts payable.E. current liabilities.

Answer 1

Accounts payable

Step-by-step explanation:

Accounts payable can be defined as debts that are incurred when goods are bought on credit. Account payable is a type of debt which needs to be paid back to the creditor within a short period of time.

Account payable can also be described as the amount of money owed by an individual or an organization to a supplier of goods and services.

Tyler has incurred a debt because he has bought lumber, tools, equipment, and other materials for his home improvement company.