Accounts Payable Are Recorded on the Books at Their

question 34

Multiple Choice

Accounts payable are recorded on the books at their:

• A)net present value.
• B)net amount.
• C)net realizable value.
• D)gross amount.

---

Definitions:

Check

A written, dated, and signed instrument that directs a bank to pay a specific sum of money to the bearer or a named party.

Holder in Due Course

A legal term describing a person who has acquired a negotiable instrument in good faith and has the right to collect on it, free from many defenses.

Due Diligence

The investigation or exercise of care that a reasonable business or person is expected to take before entering into an agreement or a financial transaction with another party.

Negotiable Instrument

A document guaranteeing the payment of a specific amount of money, either on demand or at a set time, with the payer named on the document.