What term describes amounts to be paid in the future for goods or services already acquired?

• A. Accounts payable
• B. Owner's equity
• C. Accounting equation
• D. Debits

Answer: (A)

The main idea here is that a liability represents an obligation to pay in the future for items already received. The term that fits this description is accounts payable. When a business buys goods or services on credit, it has not paid cash yet, but it has received the benefit, so it records a payable to the supplier. This liability typically shows up on the balance sheet as a current liability, since payment is usually due within a short period.

Owner's equity, by contrast, is the owner's stake in the company after liabilities, not a payment obligation the business must settle. The accounting equation describes the relationship assets = liabilities + owners' equity, which explains why accounts payable affects the liabilities side, but it isn’t itself the specific amount to be paid. Debits are a type of accounting entry used to record changes in accounts, depending on the account type, and do not by themselves describe a future payment owed.