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True,as a liability is created when transactions are undertaken on credit basis or accruals basis.
First we MUST know the company apply which of accounting concept as below :
1) cash basis.
2) Accural basis.
Then we can decide according to the operation for the expnese paid, but for sure according to the GAAP when you buy anything on Credit by sequence its AP ( Accounts Payable ).
True. Accounts payable are aslo subdivided into categories. If the goods you buy are for trading purposes, trade accounts payable should be credited. If the goods you buy are raw materials, manufacturing accounts payable should be credited. However, if the goods are consumables or fixed assets, other accounts payable should be crdited. It depends on the complexity of the accounting system and the nature of the company.
True Partially.
Correct. Outstanding/due for the value of goods and services received.
yep
True only
yes it is true.
