An Accounts Payable Ledger Is

question 80

Multiple Choice

An accounts payable ledger is:

• A)A subsidiary ledger that contains an account for each of the company's suppliers.
• B)A list of the balances of all the accounts in the accounts receivable ledger that is added to show the total amount of accounts receivable outstanding.
• C)A book of original entry that is designed and used for recording only a specific type of transaction.
• D)The ledger that contains the financial statement accounts of a business.
• E)A subsidiary ledger that contains a separate account for each party that grants both short-term and long-term credit on account to the company.

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Definitions:

Margin of Safety

The difference between actual or expected sales and the sales level at which a business breaks even; it measures operational risk.

Unit Sales Price

The amount of money charged for each individual unit of a product or service.