Asked by Mackenzie Kiernan on Jul 13, 2024
Verified
How does an account payable arise with a vendor?
A) When our business makes a cash purchase,it promises to pay the same amount again for future purchases.
B) When our customers purchase amounts from us,they promise to pay us in the future.
C) When we return purchases to our vendor,they promise to pay us for the amounts returned.
D) When our business purchases on credit,it promises to pay that amount in the future.
Account Payable
Short-term financial obligations or debts a company owes to its creditors for goods and services received.
Cash Purchase
A transaction where goods or services are paid for with cash at the time of purchase.
Credit Purchase
A transaction in which goods or services are acquired with the agreement that payment will be made at a later date.
- Carry out the administration of accounts payable, which includes the oversight and reporting of financial activities.
Verified Answer
GG
Gissal GhousyJul 15, 2024
Final Answer :
D
Explanation :
An account payable arises with a vendor when our business purchases goods or services on credit, which means that we promise to pay the amount owed in the future instead of paying immediately.
Learning Objectives
- Carry out the administration of accounts payable, which includes the oversight and reporting of financial activities.