Chapter 2: Accounts Payable Transactions

Question 1

What is Accounts Payable (A/P)?

Answer 1

The money owed to suppliers.

Question 2

What does Accounts Payable (A/P) include?

Answer 2

Medical, office supplies, salaries, equipment, utilities, lease payment, and service.

Question 3

Why Accounts Payable considered a liability?

Answer 3

Because it is money owed to creditors.

Question 4

Who has the responsibility to maintain efficient processing of accounts payable transactions?

Answer 4

Office staff.

Question 5

Not paying bills accurately or on time can adversely affect the office’s?

Answer 5

Credit rating, discount opportunities for early payments and the established business relationships with vendors and other service providers.