At October 1, 2022, Metz Industries Had an Accounts Payable

question 72

Multiple Choice

At October 1, 2022, Metz Industries had an Accounts Payable balance of $140,000.During the month, the company made purchases on account of $100,000 and made payments on account of $160,000.At October 31, 2022, the Accounts Payable balance is

• A)$140,000 debit
• B)$20,000 credit
• C)$80,000 credit
• D)$160,000 credit

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Definitions:

Quoted Interest Rate

The interest rate that a lender provides to a borrower, usually expressed as an annual percentage of the loan amount.

Self-Liquidating

An asset or credit that can cover or repay its own cost through the income it generates.

Inventory

The range of products or goods that are held by a business for the purpose of resale, crucial for operations and financial health.

Working Capital Assets

Current assets that are used in the operation of a business and can be converted into cash within a year.