Question

The key accounting considerations relating to accounts payable are:

Answer 1

Answer:

D. Determining their existence and ensuring that they are recorded in the appropriate accounting period.

Explanation:

The accounts Payable are a liability for the owner or company. They must be recorded in the appropriate accounting period as to determine their  liabilities. If they are recorded incorrectly the liabilities balance would be incorrect.

Determining their existence is equally important as unawareness may lead to wrong payments and all the cash balance may be disturbed. For example if we are given a discount and we do not know then this may lead to more payment than required. Similarly if we are not getting a discount and we are paying less than the required amount , this may also keep the liabilities overstated.