QuickBooks Certification Practice Test 2025 - Free QuickBooks Practice Questions and Study Guide

The term "accounts payable" in QuickBooks refers to the amount of money that a business owes to its suppliers or creditors for goods and services received but not yet paid for. This liability is reflected on the balance sheet and represents the obligation of the business to settle its debts.

When a company purchases inventory, supplies, or services on credit, it creates a liability under accounts payable, indicating money that will need to be paid in the future. Managing accounts payable is crucial for maintaining healthy cash flow and supplier relationships, as timely payments can often lead to better credit terms and discounts.

In contrast, other options deal with different financial aspects of a business. For example, money owed by customers pertains to accounts receivable, which is a separate account recording income due to the business. Funds available in the business bank account refer to cash or liquid assets, and total revenues generated indicate the income produced from sales, neither of which pertain to the liabilities associated with accounts payable.