The Accounts Payable Account Has Total Credit Postings of $2,500

question 100

Multiple Choice

The Accounts Payable account has total credit postings of $2,500 and debit postings of $1,500. The balance of the account is:

• A) $1,000 debit.
• B) $1,000 credit.
• C) $4,000 credit.
• D) $4,000 debit.

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Definitions:

Fair Value

An estimate of the market value of an asset, based on what a knowledgeable, willing, and unpressured buyer would likely pay to a seller.

Boot

Additional value or cash given along with a trade or exchange to equalize the value between traded items.

Plant Site

The location or real estate used for industrial or manufacturing operations.

Nominal Cost

A term often used to describe a cost that is very small or insignificant in comparison to the overall financial figures involved.