Which of the Following Is the Best Definition of Accounts

question 89

Multiple Choice

Which of the following is the best definition of accounts payable period?

• A) The time between receipt of inventory and payment for it.
• B) A secured short-term loan that involves either the assignment or factoring of receivables
• C) The time between sale of inventory and collection of the receivable.
• D) Costs that rise with increases in the level of investment in current assets.
• E) A forecast of cash receipts and disbursements for the next planning period.

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Definitions:

Paid

Paid denotes a transaction or situation where money is exchanged for goods, services, or completion of a task.

Builders' Liens

Legal claims made by contractors or suppliers against a property they have worked on or supplied materials for, ensuring payment for their services.

Bankruptcy

A legal status for individuals or entities that cannot repay the debts they owe, leading to legal processes to resolve these debts.

Insolvency

Inability of a person to pay her debts as they become due.