Which of the Following Is True About Accounts Payable?1

question 64

Multiple Choice

Which of the following is true about accounts payable?1. Accounts payable are also called trade accounts payable.2. When accounts payable are recorded at the net amount, a Purchase Discounts account will be used.3. When accounts payable are recorded at the gross amount, a Purchase Discounts Lost account will be used.

• A) 1
• B) 2
• C) 3
• D) Both 2 and 3 are true.

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Definitions:

National Debt

The cumulative amount of money that a government owes to creditors, both domestic and foreign, as a result of borrowing to cover budget deficits.

National Debt

National debt is the total amount of money that a country's government has borrowed, through various means, including foreign governments and domestic investors.

Multiplier

In macroeconomics, a factor that quantifies the effect of increased investment or spending in an economy, typically leading to a proportionally greater increase in income or output.

Multiplier

In economics, the multiplier effect refers to the proportional amount of increase, or decrease, in final income that results from an injection, or withdrawal, of spending.