Accounts Payable Quiz

Accounts Payable Classification

• Items are classified within the accounts payable as current liabilities on the balance sheet.

Payroll Processing

• Wages and payroll are processed separately from accounts payable, with payroll expenses being recorded as a separate current liability.
• However, if payroll taxes or benefits are still owed to vendors, they may be recorded as part of accounts payable.

Accounts Payable Expenses

• Accounts payable generally includes expenses such as:
  • Purchases of goods or services from suppliers
  • Utilities
  • Rent
  • Insurance premiums
  • Office supplies

Responsibility of Accounting and Finance Teams

• The accounting and finance teams are responsible for:
  • Processing and paying invoices to suppliers
  • Managing and maintaining accurate records of accounts payable
  • Ensuring timely payment of invoices to avoid late fees and penalties
  • Maintaining a good credit score by making payments on time

Test your knowledge of accounts payable with this quiz. Explore the concepts of short-term debts, vendor and supplier expenses, and the recording of monthly payments. Dive into the details of what is included and excluded from accounts payable, and enhance your understanding of business finance.