Accounts Payable Results from Earning Revenue on Account

question 120

True/False

Accounts Payable results from earning Revenue on account.

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Definitions:

Payments

The act of transferring money or other consideration from one party to another as fulfillment of an obligation or purchase.

Divisible Contract

An agreement comprising multiple promises or parts that can be separated and independently executed or enforced.

Consideration

Something of value exchanged between parties in a contract, making the agreement legally binding.

Enforceable Contract

A legally binding agreement capable of being upheld and imposed in a court of law.