2007-07-12 07:27:01 · 6 answers · asked by blondiecrt1 1 in Business & Finance ➔ Other - Business & Finance
It's a Real Account, i.e., a Balance sheet account that is carried forward into the next year. It is a proprietary account. (as opposed to a Nominal Account which is an Income statement account (revenue and expense) that is closed out at the end of the year.) And within the balance sheet it's under liabilities. Accounts payable is the total of what a company owes its trade creditors.
2007-07-12 21:18:48 · answer #1 · answered by Sandy 7 · 0⤊ 0⤋
It's not an account. It's usually a division or department within a financial office or institution. Accounts Payable pays out money for invoices received and Accounts Receivable receives the money paid against invoices they sent out.
Just in case it's not clear...you receive your credit card bill from ABC Bank...the department at the bank that processes the check you send is Accounts Receivable. At the same time, the ABC Bank may have to pay another company that provides services to it like a business that cleans their offices. That check is cut by their Accounts Payable deaprtment.
2007-07-12 14:35:45 · answer #2 · answered by Chanteuse_ar 7 · 0⤊ 1⤋
A liability account
2007-07-12 14:48:25 · answer #3 · answered by bullrush 2 · 0⤊ 0⤋
Current Liability normal credit balance.
2007-07-12 14:34:34 · answer #4 · answered by shipwreck 7 · 0⤊ 0⤋
It is a liability account (normally short-term) in the general ledger.
2007-07-12 15:06:41 · answer #5 · answered by kerry77 3 · 0⤊ 0⤋
payables is a liability
receiveables is an asset
2007-07-12 14:47:29 · answer #6 · answered by Blue October 6 · 0⤊ 0⤋