The Liability Created by a Business When It Purchases Coffee

question 44

Multiple Choice

The liability created by a business when it purchases coffee beans and coffee cups on credit from suppliers is called a(n)

• A)account payable.
• B)account receivable.
• C)revenue.
• D)expense.

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Definitions:

Restrictive Covenants

Clauses in contracts or agreements that limit certain actions of the parties involved, often to protect business interests.

Public Interest

A common concern among citizens in the management and affairs of local, state, and national government that serves the community well-being as opposed to the benefit of individuals.

Fiduciary Duty

A legal obligation of one party to act in the best interest of another party, often found in relationships involving trust, such as between a trustee and beneficiary.

Employer-Employee Relationship

A legal relationship characterized by the employer's right to control the work performed by the employee.