Accounts payable are accounts that you expect will be paid to you.

Accounts payable are accounts that you expect will be paid to you.

• A. True
• B. False
• C. It depends on the entity
• D. Not applicable to this concept

Answer: (B)

Accounts payable are obligations to pay suppliers. They arise when you purchase goods or services on credit, so they are a liability you expect to settle in the near term. The statement describes amounts you expect others to pay you, which would be accounts receivable, an asset. Because accounts payable represent what you owe, not what you will receive, the statement is false.

Accounts payable are obligations to pay suppliers. They arise when you purchase goods or services on credit, so they are a liability you expect to settle in the near term. The statement describes amounts you expect others to pay you, which would be accounts receivable, an asset. Because accounts payable represent what you owe, not what you will receive, the statement is false.