The Accounts Payable Account Has a $3,000 Credit Balance

question 83

Multiple Choice

The Accounts Payable account has a $3,000 credit balance.An entry for the payment of $1,000 on the amount owed is recorded and posted.The new balance of the Accounts Payable account is

• A) a $2,000 credit balance.
• B) a $4,000 credit balance.
• C) a $2,000 debit balance.
• D) a $4,000 debit balance.

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Definitions:

Strict Liability Rule

A regulation imposing absolute responsibility on certain persons or entities for damages or losses, regardless of fault or intention.

Squeeze-Out

A strategy used by majority shareholders to pressure minority shareholders into selling their shares, often at unfavorable terms.

Minority Shareholder

An investor who owns less than 50% of a company's shares, typically having limited influence over corporate decisions.

Business Judgment Rule

A principle that shields corporate executives from liability for decisions made in good faith and believed to be in the best interest of the company, even if they are ultimately unsuccessful.