Is Accounts Payable a Current Asset?

Written by True Tamplin, BSc, CEPF®

Updated on January 02, 2023

No, accounts payable is not a current asset. A current asset is any asset that will provide an economic benefit for or within one year. Accounts payable is an amount that is owed to another party for goods that have been received but not yet paid for. Because they represent an amount owed that must be paid within one year, they are a current liability as opposed to a current asset.

Is Accounts Payable a Current Asset FAQs

Is accounts payable a current asset?

No, accounts payable is not a current asset.

What is a current asset?

A current asset is any asset that will provide an economic benefit for or within one year.

What is accounts payable?

Accounts payable is an amount that is owed to another party for goods that have been received but not yet paid for.

Why is accounts payable not considered a current asset?

Because they represent an amount owed that must be paid within one year, they are a current liability as opposed to a current asset.

About the Author

True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website, view his author profile on Amazon, or check out his speaker profile on the CFA Institute website.