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.

---

Definitions:

Eustress

Positive stress that has beneficial effects on health, motivation, performance, and emotional well-being.

Stressors

External factors or situations that cause stress to an individual, potentially impacting their mental and physical health.

Performance

The manner in which an individual, group, or organization accomplishes tasks, goals, or objectives, often measured against some standards.

Discretionary Behavior

Voluntary actions by employees that are not directly or explicitly recognized by the formal reward system, which can contribute positively or negatively to an organization.