JAMB Accounts Principles of Accounts 2020 Paper

Concept:Account payable is an amount owed to creditors, so it is classified as a liability.Explanation:The accounting equation is:$$\text{Assets} = \text{Liabilities} + \text{Equity}$$Account payable represents a debt owed by the business, therefore it increases liabilities.It is not an asset, capital, or equity.Answer:D. liabilities