Asked by Timothy McCormick on Jul 12, 2024
Verified
The accounts payable account is listed in the chart of accounts as an asset.
Accounts Payable
Liabilities representing amounts owed by a company to creditors for goods and services that have been purchased or received but not yet paid for.
Asset
An economic resource or a controlled item of value that an individual, corporation, or country owns or controls with the expectation that it will provide future benefit.
- Differentiate the characteristics and usual balances of asset, liability, and equity accounts.
Verified Answer
CG
Carlene GittensJul 17, 2024
Final Answer :
False
Explanation :
The accounts payable account is listed in the chart of accounts as a liability, not an asset. It represents the amount owed to vendors or suppliers for goods or services that have already been received but have not yet been paid for.
Learning Objectives
- Differentiate the characteristics and usual balances of asset, liability, and equity accounts.