When a Cash Disbursement in Payment of an Accounts Payable

question 60

Multiple Choice

When a cash disbursement in payment of an accounts payable is recorded

• A)the liability account is increased
• B)the income statement is changed
• C)the cash account is unchanged
• D)the liability account is decreased

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Definitions:

Dividend Growth Model

A valuation model used to determine the value of a stock by using predicted dividends and discounting them back to present value.

Growth Rate

The rate at which a company's earnings, revenue, or other important metric increases over a specified period.

Dividend Growth Model

A model that estimates the value of a dividend-paying stock, based on the assumption that its dividends will continue to grow at a constant rate in the foreseeable future.

Cost of Equity

The return that investors expect for investing in a company's equity, representing the compensation for their risk.