ECONOMICS

Detailed explanation-1: -Accounts payable, on the other hand, represent funds that the firm owes to others-for example, payments due to suppliers or creditors. Payables are booked as liabilities.

Detailed explanation-2: -Liabilities are what a business owes. It could be money, goods, or services. They are the opposite of assets, which are what a business owns.

Detailed explanation-3: -Business liabilities are, by definition, the amounts owed by a business at any one time. They’re often expressed as “payables” for accounting purposes. Unless you’re running a complete cash business (paying and collecting only cash), your business probably has liabilities.

Detailed explanation-4: -Owner’s Equity on a Balance Sheet You can find the amount of owner’s equity in a business by looking at the balance sheet. On the left are assets, the value of what the business owns. On the right are liabilities (what’s owed by the business) and owner’s equity (what’s left).