A Liability Is Properly Accounted for as an Account Payable

question 40

Multiple Choice

A liability is properly accounted for as an account payable if

• A) the amount is known and owed as of the balance sheet date.
• B) the amount can be estimated and is owed at the balance sheet date.
• C) the amount is known at the balance sheet date and owed by the end of the next fiscal year.
• D) the amount is estimated and owed within 90 days of the balance sheet date.

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Definitions:

Ginger Ale

A carbonated soft drink flavored with ginger, often used as a mixer in cocktails or consumed on its own for its taste and digestive benefits.

Ratio

A quantitative relationship between two numbers showing how many times the first number contains the second or vice versa.

Unknown Quantity

A variable or value in mathematics and science that is not known but can be solved for in an equation or experiment.

Proportion

A part or segment of a whole, often expressed as a fraction, percentage, or ratio.