Account payable is classified as a

Assessment: WAEC SSCE - Financial Accounting - 2017 (Objective) Subject: Financial Accounting

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Account payable is classified as a

Answer Details
Accounts payable is classified as a current liability. A liability is a debt or obligation that a company owes to another party. Current liabilities are debts that are due to be paid within one year, while long-term liabilities are debts that are due to be paid over a longer period of time, usually more than one year. Accounts payable specifically refers to money that a company owes to its suppliers for goods or services that have been received but not yet paid for. Since these debts are typically due within a short period of time, usually 30 to 60 days, they are classified as current liabilities.
Read lesson note on Nature And Significance Of Accounting (JAMB)
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