INSTRUCTIONS: Choose the Word or Phrase in [ ] Which

question 103

Multiple Choice

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-Short-term goals are usually based on a maximum period of [one year | five years].

• A)for the first item
• B)for the second item
• C)if neither item will correctly complete the statement.

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Definitions:

Accounts Payable Subsidiary Ledger

A detailed ledger that contains all individual transactions related to accounts payable.

Payments To Creditors

Money paid out by a business to settle debts owed to suppliers or lenders for goods, services, or loans.

Purchases On Account

Transactions where goods are acquired on credit, with payment to be made at a later date.

Subsidiary Ledger

A detailed ledger that contains account information to support the main general ledger accounts.