An account payable is:

A) debt minus equity

B) money the company owes a bank for funds it has borrowed

C) money owed to the company by a customer when the customer makes a purchase on credit

D) money owed by the company to a supplier when the company purchases using credit

D) money owed by the company to a supplier when the company purchases using credit

Explanation:

Accounts payable (AP) is money owed by a business to its suppliers shown as a liability on a company's balance sheet. It is distinct from notes payable liabilities, which are debts created by formal legal instrument documents.

Accounts payable are short-term liabilities relating to the purchases of goods and services incurred by a business. Examples of accounts payable include accounting services, legal services, supplies, and utilities. Accounts payable are usually reported in a business' balance sheet under short-term liabilities.

B) Money the company owes a bank for funds it has borrowed.

D) Money owed by the company to a supplier when the company purchases using credit.

Explanation:

A)

Debt minus Equity is incorrect. As Debt plus Equity is equal to Assets in Accounting Equation. So Account Payable can be a part of Total Debt but Debt minus Equity is not accurate.

B)

An account payable is money the company owes a bank for funds it has borrowed.

C)

An Account Receivable is the money owed to the company by a customer when the customer makes a purchase on credit.

D)

An account payable is money owed by the company to a supplier when the company purchases using credit.