The Trade Payables Account Has a Beginning Balance of $1,000

question 44

Multiple Choice

The trade payables account has a beginning balance of $1,000 and we purchased $3,000 of inventory on credit during the month. The ending balance was $800. How much did we pay our creditors during the month?

• A) $3,000
• B) $3,200
• C) $4,800
• D) $2,800

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Definitions:

Accounts Payable Period

This is the average number of days it takes for a business to pay its invoices from suppliers and vendors, indicating the efficiency of its payables management.

Letter Of Credit

A financial document issued by a bank guaranteeing a buyer's payment to a seller within a specified timeframe.

Written Statement

A document that records the details of a declaration or an agreement in writing.

Bank Payment

is a transaction where money is transferred from one bank account to another to fulfill a financial obligation.