A Product That Is Purchased from Vendors for Sale to Customers

question 16

Multiple Choice

A product that is purchased from vendors for sale to customers is called a/an:

• A)Account receivable.
• B)Trial balance.
• C)Activity transaction.
• D)Inventory item.
• E)All of these.

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Definitions:

Primary Liability

The direct responsibility to pay a debt or fulfill an obligation, without relying on another to first default.

Certified Check

A personal check for which the issuing bank guarantees payment by certifying that sufficient funds are available and set aside.

Liable

Legally responsible or obligated, often in the context of owing compensation for harm or damages caused.

Liability

A legal responsibility for one's actions or omissions, which may result in having to pay damages or make restitution in a civil lawsuit.