Accounts payable

Which of the following are sources for a line of credit?

Select all that apply.

• Bank

• Family

• Vendor or supplier

• Credit card

Bank

Vendor or supplier

Credit card

Which of the following describes the debt associated with accounts payable?

Select all that apply.

• Bills paid after a year

• Initial transaction via cash

• Initial transaction via credit

• Bills paid in the near future

Initial transaction via credit

Bills paid in the near future

Current liabilities

Debts that a business must repay within a short period, usually within a year

Long-term liabilities

Longer, usually more than one year, repayment period and are not considered current liabilities