At the household level, people are also subject to paying bills for goods or services provided to them by creditors. For example, the telephone company, gas company, and cable company are types of creditors. Each of these creditors provides a service first and then bills the customer after the fact. Each requires payment for goods or services rendered and must be paid accordingly. If people or businesses don't pay their invoices, they are considered delinquent. Accounts payable refers to obligations to suppliers for purchases of inventory, supplies or services on credit. Payables-related purchases can be accounted for using the gross or net method. When testing accounts payable, assertions about purchases and cost of goods sold are also taken into account