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The syntax of the question is flawed and therefore unanswerable as stated. However, if you meant 'are Accounts Payable an asset to the company or a liability?' -the answer is that payables represent what you owe to somebody and are therefore a minus(liability) to overall net worth of the business.
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What is a liability account?
Liability Accounts record obligations of a business towards its creditors. Examples of liability accounts are Accounts Payable, Interest Payable, Wages Payable. These accounts appear on the balance sheet.
What is money owed to a business called?
Accounts Payable
When an accounts payable account is paid in cash the owner's equity in the business decreases True or False?
False. Payment of an accounts payable reduces cash and reduces accounts payable. Equity is not affected.
What statement does Accounts payable show?
Balance sheet of the company shows the total amount of accounts payable for a fiscal year of business.
What are the three major business activities in accounting?
accounts payable, accounts receivable and taxes.
What does it means it the accounts payable balance has increased on the Trial Balance?
Accounts Payable are the amounts owing by the business to its creditors.in a situation where the Accounts Payable balance has increased in the trial balance means that the amount owing by the business has increased probably due to more credit purchases.
What does it mean when the accounts payable balance has increased on the trial balance?
Accounts Payable are the amounts owing by the business to its creditors.in a situation where the accounts payable balance has increased in the trial balance means that the amount owing by the business has increased probably due to more credit purchases.
What kind of account is tax payable?
Accounts payable are a liability account, representing money you owe your suppliers. Accounts payable are funds you owe others—they sent you an invoice that is still “payable” by you. Accounts payable are usually due within 30 days, and are recorded as a short-term liability on your company’s balance sheet. Only accrual basis accounting recognizes accounts payable. Accounts payable (AP) today is a strategic business function that optimizes working capital, enables more significant savings for the business, and helps improve supplier relationships. Many companies are using IBN tech LLC Accounts Payable Outsourcing Services, and they find that they save up to eighty percent on the cost of labour alone. Additionally, they save money related to errors on invoices.
What does it mean when the Accounts Payable account balance has increased on the Trial Balance?
accounts payable are the amounts owing by the business to its creditors.in a situation where the accounts payable balance has increased in the trial balance means that the amount owing by the business has increased probably due to more credit purchases.
Are creditors accounts payable or accounts receivable?
Accounts Payable
Who is responsible for posting authorized credits to accounts payable?
Accounts Payable clerk
What will usually cause the liability account Accounts Payable to increase?
Purchases from vendors on credit is the main cause for increasing accounts payable account in normal course of business.
