Quiz 12 – Accounts Payable – (Answers)

Note – Please take our quiz ‘Quiz 12 – Accounts Payable – (Answers)‘ on this page before going through the below answers. Only the top 3% of our audience scored 10/10 in all of them.

  • Name – Quiz 12 – Accounts Payable- (Answers)
  • Topic – Accounts Payable
  • Answers with Explanation


Q1. Accounts Payable A/C’ is _____ when the invoice is recorded.

Ans. When an invoice is recorded the company’s accounts payable increase. In such a case ‘Accounts Payable A/C’ is credited. Rule – Credit the increase in liability.


Q2. Accounts Payable A/C’ is _____ when payment is made to vendors.

Ans. When payment is made to a vendor accounts payable is debited because the accounts payable balance decreases. Rule – debit the decrease in liability.


Q3. Accounts payable is also called _____.

Ans. Accounts payable are also known as trade payable or accounts payable.


Q4. Accounts payable usually have _____ balance.

Ans. As accounts payable is a liability, it usually has credit balance.


Q5. Purchase ledger control account (PLCA) is _____.

Ans. Also known as the “Trade Creditor Control A/C,” the Purchase Ledger Control Account shows the total trade creditors owed by a company at a particular point in time. In simple words ‘Total of Accounts Payable’.


Q6. Accounts payable is _____.

Ans. It is a company’s short-term obligation i.e. the total amount due to be paid to the creditors.


Q7. Accounts payable are shown on _____.

Ans. Accounts payable are shown on the liability side of a balance sheet.


Q8. Accounts payable are recorded in _____.

Ans. A purchase book is a special-purpose subsidiary book kept by a business for recording all credit purchases.


Q9. Accounts payable is the amount due to be paid back to the _____.

Ans.  Basically, it is the amount which the business has yet to repay to its creditors.


Q10. Accounts payable is a _____ liability.

Ans. Accounts payable is a short-term (current) liability for the business.


Q11. Accounts payable are obligations of a business that arise from _____.

Ans. Accounts payable are obligations of a business that originate because of purchases made on credit e.g. purchase of raw material, finished goods etc.



* indicates required