Assuming That Cash Is Available, Payment for an Account Payable

question 65

Multiple Choice

Assuming that cash is available, payment for an account payable with terms of 3/10, net 30 should be made on day

• A) 3.
• B) 10.
• C) 13.
• D) 30.

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Definitions:

Unexpired Insurance

The portion of the insurance premium that has not yet expired or been used up, considered a prepaid expense.

Office Supplies

Consumable items that are used in the daily operations of an office like pens, paper, and staplers.

Adjusting Entry

A journal entry made in accounting to update the record of revenues earned or expenses incurred that have not been previously recorded.

Physical Count

The process of manually counting and verifying the quantities of inventory on hand at a specific point in time.