Yes, accounts payable is an example of liablity. Accounts Payable will exists if the company purchases goods or services to its vendors on credit. This kind of payable is under current liabilities category since this is normally to be paid within normal operating cycle or within a year. Accounts Payable is considered as the most liquid current liabilities in the balance sheet.LIABILITy
In accounting, liability is the payables or debts of a business to settle. This an obligation of the company to settle to another company. Liabilities have two main categories:1. Current Liabilities
-these are payables,obligations or debts which are short-term payables that needs to be paid or settled by the business within a year.Some Examples of Current LiabilitiesAccounts PayableInterest PayableIncome Tax PayableAccrued ExpensesShort-term loans2. Non-Current Liabilities
-these are payables, debts or obligations that are long-term liabilities that can be settle after a year or more than a year.Some Examples of Non-Current LiabilitiesBonds PayableLong-term Notes PayableDeferred Tax LiabilitiesMortgage Payable
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In accounting, accounts payable is the obligations of the business to pay something for something they have purchased but not yet paid. It is a liability as the business have the obligation to pay something to others.
To know more about liabilities, just continue on reading below.
In accounting, liabilities are the resources that a company owes to another business or people.Two types of liabilities:Current liabilities - accountabilities that must be paid or dealt within a year or operating cycle of a business.Non-current liabilities - accountabilities that must be paid but not within a year or operating cycle of a business.Examples of current liabilities:Accounts PayableNotes PayableUnearned RevenuesExamples of non-current liabilities:Mortgage PayableBonds Payable