Are accounts payable an expense or a liability?

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Is accounts payable included in the liabilities or in the assets in the balance sheet? Where should I include it and should it be current or non current?

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score 0 · Answer 1 · 2012-12-02T18:13:02+00:00

Accounts payable are expenses that are not paid yet. Therefore, in the balance sheet, they will appear as liabilities.

For example if you have an $100 electricity bill unpaid at the year end, you will have a debit in the expenses for $100 and a credit in the accounts payable (a liability) for $100