What is an accounts payable?

A) Amounts a customer owes our business from a credit sale where the customer promises to pay later.
B) Amounts our company has already payed to our vendors.
C) Amounts our business is obligated to pay in the future.
D) Amounts our company must return to our vendor if discounts are not granted on our purchases.

Accounts Payable

The amount of money owed by a company to its creditors for goods and services received but not yet paid for.

Credit Sale

A type of transaction where the goods or services are provided to the customer with the agreement that payment will be made at a later date.

Future Obligation

A commitment or responsibility to incur a cost or expenditure at a future date.