Accounts Payable Is the Asset Created When a Company Sells

question 80

True/False

Accounts payable is the asset created when a company sells services or products to customers who promise to pay cash in the future.

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Definitions:

Cost of Entry

The initial capital and expenses required to start a business or enter a market.

Economies of Scale

The cost advantage achieved by an enterprise when production becomes efficient, as the scale of the operation increases.

Essential Resource

Is a resource that is necessary for the survival of an economy or ecosystem, often including items like water, air, and food.

Monopoly Result

The outcome of having a single seller in a market, which can lead to higher prices and less consumer choice.