Question

In the blank space beside each numbered balance sheet item, enter the letter of its balance sheet classification. If the item should not appear on the balance sheet, enter a Z in the blank.

A. Current assets

B. Long-term investments

C. Plant assets

D. Intangible assets

E. Current liabilities

F. Long-term liabilities

G. Equity

8. Accounts payable

Short answer

The correct answer is E. Current liabilities

Step-by-step solution

Definition of Account payables

Account payables can be defined as the amount due to be paid to the suppliers of the material required for production of the goods and services of the organization.

Reason of choice

Account payables is the amount belong to the suppliers of the material; hence it should be paid within one year and should be disclosed under current liabilities section.