Accounts Payable is used to maintain ________________________________.

Question

BlackTom AI · Accepted Answer

The question asks what Accounts Payable is used to maintain. The provided answer indicates: 'the funds owed by your company for goods and services provided by your suppliers.'

In general, Accounts Payable is a liability account that tracks what a company owes to its vendors for purchases made on credit. It reflects obligations to suppliers and remains on the balance sheet until those obligations are paid. This aligns with the core function of AP: monitoring amounts payable, due dates, and settlement of short-term liabilities arising from purchases of goods or services.

Without the list of answer options to compare, we can still reason about the concept: if an option described AP as tracking cash you currently have, that would be incorrect because AP tracks amounts you owe, not cash on hand. If an option claimed AP governs revenue or customer payments, that would be incorrect because those tasks belong to accounts receivable and cash receipts. If an option suggested AP records fixed assets or depreciation, that would also be misattributed to a different asset or depreciation module rather than AP.

Thus, the accurate understanding is that Accounts Payable maintains the funds you owe to suppliers for goods and services received on credit, reflecting current liabilities and helping with cash flow planning and vendor management.

SG30018E2 - Sage 300 2018 Accounts Payable Module 1 Quiz

Accounts Payable is used to maintain ________________________________.

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