Which best defines a vendor?

• A. An entity to which one pays money
• B. A person who sells products to customers
• C. A type of QuickBooks account
• D. A supplier of services but not a business

Answer: (A)

A vendor is any person or company from whom your business buys goods or services and to whom you owe money. In QuickBooks, you create vendor records to track what you owe, enter bills, and manage payments, which is why the best definition focuses on the entity you pay. It’s not about selling to customers (that describes a vendor from the buyer’s perspective but doesn’t define who you pay). It’s not a QuickBooks account type, since a vendor is a list item used for accounts payable. And it isn’t limited to service providers or non-business entities—vendors can be individuals or businesses that supply goods or services.