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Q. Explain Accounts payable?
Accounts payable are amounts owed to suppliers meant for goods or services purchased on credit. Accounts payable are usually due in 30 or 60 days and do not bear interest. In the balance sheet the accounts payable amount is the total of the individual accounts payable to suppliers shown in a subsidiary ledger or file.
Notes payable are unconditional written promises by the company to pay a specific amount of money at a certain future date. The notes may happen from borrowing money from a bank from the purchase of assets or from the giving of a note in settlement of an account payable. Usually only notes payable due in one year or less are included as current liabilities.
Salaries payable are amounts owed to employees intended for services rendered. The company hasn't paid these salaries by the balance sheet date because they aren't due until later.
Sales taxes payable are the taxes a company has collected from customers however not yet remitted to the taxing authority typically the state. Other accrued expenses might comprise income taxes payable, taxes withheld from employees and interest payable.
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