What is an account payable? OA. It is a liability for goods or services purchased on credit and supported by the credit standing of the purchaser. OB. It is an amount of money to be received from a supplier. OC. It is a liability for goods or services purchased on credit and supported by a written agreement. OD. It is an asset arising from the sale of goods or services on credit.

What is an account payable? OA. It is a liability for goods or services purchased on credit and supported by the credit standing of the purchaser. OB. It is an amount of money to be received from a supplier. OC. It is a liability for goods or services purchased on credit and supported by a written agreement. OD. It is an asset arising from the sale of goods or services on credit.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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When should revenue from the sale of merchandise normally be recognized? A)When the customer takes possession of the merchandise. B)When the customer takes possession of the merchandise, if sold for cash, or when payment is received, if sold on credit. C)Either on the date the customer takes possession of the merchandise or on the date on which the customer pays. D)When the customer pays for the merchandise.
Which of the following is an example of Current Asset of a Merchandise Business? a. Interest expense b. Accounts receivable c. Salary and Wages paid by the business d. Accounts payable
The contra−revenue accounts include: A. Sales Tax Payable. B. Sales Returns and Allowances. C. Sales Discount. D. Both B and C are correct.
Which of the following is an example of a contra revenue account?A. salesB. merchandise inventoryC. sales discountsD. accounts payable
When goods are sold on a bill-and-hold basis, what conditions must be met to recognize revenue upon receipt of the order?
How is cost of goods sold classified in the financial statements?a. As a revenueb. As an expensec. As an assetd. As a liability
Several accounts are listed below a. Purchases Returns and Allowances b. Sales Discounts c. Wages Expense d. Allowance for Doubtful Accounts e. Unearned Rent f. Income Taxes Payable g. Dividends Distributed h. Interest Revenue i. Inventory REQUIRED: List the accounts above that would normally have a credit balance
The following is considered an Asset Account: a. Salaries Payable b. Benefits Payable c. Cash or Checking Account d. Wage Expense
Which is wrong? The term creditable input VAT means input VAT deductible from output VAT. Input VAT on personal consumption are creditable against output VAT. Only input VAT for purchase of goods or services in the course of business is creditable. Input VAT needs to be evidenced by a VAT invoice or VAT official receipt to be creditable.
An encumbrance represents the estimated future liabilities for goods or services resulting from placing a purchase order or signing a contract. a. True b. False
Allowance for Uncollectible Accounts is An Asset A Liabilitity An Expense A Contra-Asset
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