Question

Where would ‘accounts payable’ most likely appear in a set of financial statements? In both the...

Where would ‘accounts payable’ most likely appear in a set of financial statements?

In both the income statement and the balance sheet

In the balance sheet under 'current liabilities'

In the balance sheet under 'non-current liabilities'

In the income statement before operating profit

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Answer #1

answer :in the balance sheet under ' current liabilities'

account payable means money owed by the company to its creditors and it is paid within a year , so it must shown under current liabilities. eg : money owed to suppliers who distribute us the rawmaterials.

non current liabities are the liabilities which owed by the company paid after a year eg : when we take a loan from a bank, we pay the full amount after a year.  

income statements not show 'accounts payable' as it is a liability and income statements shows expenses and income of the company.

hence account payable shown in the balance sheet under 'current liabilities'.

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