No, accounts payable is not a current asset. A current asset is any asset that will provide an economic benefit for or within one year. Accounts payable is an amount that is owed to another party for goods that have been received but not yet paid for. Because they represent an amount owed that must be paid within one year, they are a current liability as opposed to a current asset.
Is Accounts Payable a Current Asset? FAQs
No, accounts payable is not a current asset.
A current asset is any asset that will provide an economic benefit for or within one year.
Accounts payable is an amount that is owed to another party for goods that have been received but not yet paid for.
Because they represent an amount owed that must be paid within one year, they are a current liability as opposed to a current asset.
Accounts Payable usually appears as a liability on balance sheets, demonstrating the amount that the company owes to vendors or suppliers.
True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.
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