BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Accounts payable is the money a company owes its vendors, while accounts receivable is the money that is owed to the company, typically by customers. When one company transacts with another on credit, one will record an entry to accounts payable on their books while the other records an entry to accounts receivable.

Detailed explanation-2: -Liabilities are debts or other obligations in which your business owes money, now or in the future. Assets are items of value that your business owns, such as real estate and equipment. Assets and liabilities are part of a business’s balance sheet and are used to judge the business’s financial health.

Detailed explanation-3: -Accounts payable (AP) is a short-term debt and a liability on a balance sheet where a business owes money to its vendors/suppliers that have provided the business with goods or services on credit.

Detailed explanation-4: -Liabilities are everything a business owes, now and in the future. They are found on the right side of a balance sheet. A common small business liability is money owed to suppliers i.e. accounts payable.

Detailed explanation-5: -Accounts payable (AP) represents the amount that a company owes to its creditors and suppliers (also referred to as a current liability account). Accounts payable is recorded on the balance sheet under current liabilities.