The Amount Owed by an Entity When It Makes a Purchase

question 75

Multiple Choice

The amount owed by an entity when it makes a purchase on account is termed a(n) :

• A)accounts receivable.
• B)accounts payable.
• C)note receivable.
• D)note payable.

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Definitions:

Warranty

A warranty is a guarantee provided by a seller to a buyer, promising to repair or replace a product if it fails within a certain period after purchase.

Disclaimed

The act of renouncing a claim to or denying responsibility for something, often seen in legal disclaimers or warranties.

Type

A category or class that individuals or things can be grouped into based on shared characteristics or qualities.

Implied Warranty

A legal term for the unspoken and unwritten guarantees that the law assumes goods or services must meet.