Consider Accounts Receivable and Accounts Payable

question 139

Multiple Choice

Consider Accounts Receivable and Accounts Payable. Which of the following statements is TRUE?

• A)Accounts Receivable is a liability and Accounts Payable is an asset.
• B)Accounts Receivable is an asset and Accounts Payable is an asset.
• C)Accounts Receivable is an asset and Accounts Payable is a liability.
• D)Accounts Receivable is a liability and Accounts Payable is a liability.

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Definitions:

Articles Of Incorporation

A method of incorporating based on a US approach and used in some jurisdictions in Canada.

Memorandum

A written document that communicates information, policies, or decisions within an organization or between entities.

Lift The Corporate Veil

A legal action to treat the rights or liabilities of a corporation as the rights or liabilities of its shareholders or directors.

Pre-Emptive Rights

Rights granted to existing shareholders to purchase additional shares before the company offers them to the public, to maintain their percentage of ownership.