At an Accounting Firm,the Secretary Orders Printer Cartridges,cases of Paper,paper

question 31

Multiple Choice

At an accounting firm,the secretary orders printer cartridges,cases of paper,paper clips,and other small items.These items would be classified as:

• A) replacement parts
• B) provisions
• C) OEM parts
• D) accessory equipment
• E) supplies

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Definitions:

Accounts Payable

The amounts a company owes to creditors for items or services purchased on credit which are due within a year or within a company's operating cycle.

Equipment

Tangible assets used in operations, such as machinery and computers, which are not intended for sale.

Owner's Equity

Owner's equity is the residual interest in the assets of the entity after deducting liabilities, representing the owner's claim on the business assets.

Income Statement

A report detailing a company's income and expenditures within a certain time frame, leading to a profit or deficit.