The Accounts Payable Account

question 66

Multiple Choice

The Accounts Payable account:

• A)has a normal credit balance.
• B)is increased by a debit.
• C)is an asset.
• D)is increased when a company receives cash from customers.

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Definitions:

Resource Prices

Refer to the market values assigned to natural or human-made materials that are used in the production of goods and services.

Inefficient Use

Utilization of resources in a way that is not optimal or does not maximize the potential outcome or benefit.

Economies of Scale

The economic benefits that companies gain from their size of operations, usually with the expense for each produced unit going down as the production volume goes up because fixed expenses are distributed across a larger number of units.

Range of Output

The spectrum of production output levels within a manufacturing or production process, from minimum to maximum, based on capacity, demand, and resource availability.