The Debt Created by a Business When It Borrows from a Vendor

question 9

Multiple Choice

The debt created by a business when it borrows from a vendor or supplier is called a(n) :

• A) account payable.
• B) contingent liability.
• C) intangible asset.
• D) account receivable.

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Definitions:

Personal Representative

An individual appointed to administer the estate of a deceased person.

Executor

A person appointed by a testator to serve as a personal representative on the testator’s death.

Fiduciary

A legal and ethical relationship of trust where one party manages another party's assets or interests.

Highest Standard

Refers to the top or most rigorous level of quality or achievement that can be reached in a specific field or activity.