Accounts Payable Is A(n)

question 13

Multiple Choice

Accounts Payable is a(n)

• A) asset.
• B) liability.
• C) revenue.
• D) expense.

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Definitions:

Accounts Receivable

Money owed to a business by its clients or customers for goods or services provided on credit.

Average Collection Period

The average number of days it takes for a business to collect its receivables from customers.

Quick Assets

Assets that can be converted into cash quickly without significantly affecting their value, such as cash, marketable securities, and accounts receivable.

Debt to Assets Ratio

A financial ratio that indicates the percentage of a company's assets that are provided via debt.