What accounts for money a company owes to suppliers for goods or services received?

The correct answer is Accounts Payable, which represents the amount a company owes to its suppliers for goods and services that have been delivered but not yet paid for. This liability appears on the balance sheet and is an essential component of a company’s working capital management. When a business acquires materials or services on credit, it incurs an obligation to pay the supplier, hence increasing its accounts payable. This form of credit allows companies to operate smoothly while managing cash flow by delaying payment without incurring interest.

The other options reflect different aspects of financial obligations and transactions. Accounts Receivable pertains to amounts owed to the company by its customers for sales made on credit; it represents assets rather than liabilities. Accrued Expenses are similar to accounts payable but refer specifically to expenses that have been incurred but not yet paid, typically related to ongoing operational costs. Contractual Obligations would encompass a broader range of financial commitments defined by agreements but do not specifically refer to the amounts owed for goods and services received from suppliers.