Accounts Payable Would Appear on The

question 38

Multiple Choice

Accounts payable would appear on the:

• A) balance sheet with the current liabilities
• B) retained earnings statement with the dividends
• C) income statement with the expenses
• D) balance sheet with the current assets

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Definitions:

Periodic Inventory System

An inventory system that updates inventory balance and cost of goods sold at the end of an accounting period, not continuously.

Economic Entity Assumption

An accounting principle that states a company and its owner(s) are separate entities for financial reporting purposes.

Expenses

Outflows or other uses of assets or incurrences of liabilities during a period from delivering goods, rendering services, or carrying out other activities.

Proprietorship

A business structure owned by a single individual who is responsible for its liabilities and entitled to its profits.