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:

Wealth

An abundance of valuable resources or valuable material possessions, often considered in terms of money, property, and assets.

Income

The financial earnings received by a person or household from various sources like work, investments, or benefits, typically measured on an annual basis.

Born to Wealth

Indicates individuals who inherit considerable financial resources or assets from their families, thus starting life with significant economic advantages.

Life Span

The maximum or typical length of time an organism is expected to live.