An Accounts Payable Ledger

question 48

Multiple Choice

An accounts payable ledger:

• A) Contains a separate account for each creditor (supplier) to the company.
• B) Is a book of original entry designed and used for recording only a specified type of transaction.
• C) Contains the financial statement accounts of a business.
• D) Contains an account for each credit customer.
• E) Lists the balances of selected accounts that are added to show the total amount of the significant long-term creditors outstanding.

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Definitions:

Consumers

Individuals or organizations that use economic goods and services for their own personal benefit or to meet their needs.

Net Loss

The amount by which total expenses exceed total revenues in a specific period, indicating a negative financial performance.

X-Inefficiency

The difference between efficient behavior of businesses theoretically assumed or envisaged and their observed behavior in reality due to a lack of competitive pressure.