Amounts That a Business Must Pay in the Future Are

question 68

Multiple Choice

Amounts that a business must pay in the future are known as

• A) accounts receivable.
• B) accounts payable.
• C) capital.
• D) expenses.

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Definitions:

Declaration

An official statement or announcement made by a person or an organization.

Convertible Securities

Financial instruments, such as bonds or preferred shares, that can be converted into a specified amount of another asset, typically shares of the issuing company.

Diluted Earnings

Net income available to common shareholders, adjusted for the effects of all potential dilutive securities.

Ranking

Ordering or grading things or individuals in terms of quality, importance, or performance.