Which of the Following Best Describes the Payable Deferral Period

question 82

Multiple Choice

Which of the following best describes the payable deferral period for a company?

• A)The time between when goods arrive at the company and when they are sold.
• B)The time between when goods arrive at the company and when they are paid to the supplier.
• C)The time between when goods are paid for and when they are sold.
• D)The time between when good are paid for and when the cash is collected from their sale.

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Definitions:

Double-entry Accounting

An accounting method where every financial transaction results in equal and opposite effects in at least two different accounts.

Ledger

A book or collection of financial accounts where all transaction records are summarized and recorded.

Journal

A book or digital record where all financial transactions are initially recorded in chronological order before being posted to accounts in the ledger.

Debit

A bookkeeping record that leads to either a rise in assets or a fall in liabilities in a firm's balance sheet.