Business FinancesQuestion 329 of 1605
Accounts payable on a contractor's balance sheet represents:
a.Money the contractor owes to suppliers and subcontractors
b.Money customers owe to the contractor
c.Cash held in the company bank account
d.The owner's investment in the business
Explanation
Accounts payable is a current liability — amounts the contractor owes to vendors, suppliers, and subcontractors. Money owed TO the contractor by customers is accounts receivable, an asset.
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)