Which of the Following Is True Regarding Recording an Accounts

question 8

Multiple Choice

Which of the following is true regarding recording an accounts payable transaction?

• A)When a purchase is made,accounts payable is increased with a debit and when the bill is paid,accounts payable is decreased with a credit.
• B)Accounts payable transactions arise solely from inventory purchases and not service related payments.
• C)Accounts payable represents a note; a vendor ensures we sign an agreement with interest paid.
• D)When a purchase is made,accounts payable is increased with a credit and when the bill is paid,accounts payable is decreased with a debit.

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Definitions:

Investment

The act of allocating resources, usually money, with the expectation of generating an income or profit, such as purchasing assets or stocks.

Economic Term

A concept or terminology used within the field of economics to describe processes, theories, or phenomena related to how goods and services are produced, distributed, and consumed.

Opportunity Cost

Giving up potential improvements from various alternatives by choosing one option.

Scarcity

Scarcity refers to the fundamental economic problem of having seemingly unlimited human wants in a world of limited resources, leading to the necessity of allocation decisions.