CLEP Financial Accounting Exam Prep

Answer - C - Money owed to others for goods or services are known as accounts payable. Account payables are a liability.

Key Takeaway: Accounts payables are money that is owed, but not yet paid, for goods or services. Accounts payables are liabilities. Accounts receivable are amounts a company has a right to collect on goods or services sold on credit to a company. Accounts receivables are assets.