What is a payable account in QuickBooks?

A payable account in QuickBooks specifically refers to the Accounts Payable account, which is used to track money owed to suppliers and vendors for goods and services received but not yet paid for. This account represents a liability on the balance sheet, indicating the amount a business needs to pay in the future.

When a company purchases items on credit or receives services without immediate payment, it records this obligation in the Accounts Payable account. This helps in managing cash flow, as it provides a clear overview of the short-term liabilities that need to be settled.

The other options do not represent payable accounts. An asset account is used to track what a company owns, an income account tracks revenue earned, and accounts receivable references money owed to a business by its customers for sales made on credit, which is distinct from tracking Payables.