account payable
account receivable
current liabilities
accumulated liabilities
✅ The correct answer is A.
A company purchases goods but does not pay payments to suppliers immediately and record them as account payable. Accounts payable (AP) is money owed by a business to its suppliers shown as a liability on a company’s balance sheet. It is distinct from notes payable liabilities, which are debts created by formal legal instrument documents.
A company purchases goods but does not pay payments to suppliers immediately and record them as account payable. Accounts payable (AP) is money owed by a business to its suppliers shown as a liability on a company’s balance sheet. It is distinct from notes payable liabilities, which are debts created by formal legal instrument documents.