The Debt Created by a Business When It Makes a Purchase

question 52

Multiple Choice

The debt created by a business when it makes a purchase on account is a(n) :

• A) account receivable.
• B) revenue.
• C) prepaid expense.
• D) account payable.

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Definitions:

Plane Operating Costs

Expenses related to the operation of an aircraft, including fuel, maintenance, crew, and insurance.

Flights

Scheduled air services between two points, but in business terms, it can also refer to a rapid execution of a series of tasks or operations.

Plane Operating Costs

The expenses related to operating an aircraft, including maintenance, fuel, and crew expenses.

Planning Budget

A planning budget is formulated prior to a budget period and is based on management's objectives, serving as a guide for financial planning and performance evaluation.