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.

Understand the significance of chronological order in narrative writing.

Identify the role of transitional expressions in indicating time within a paragraph.

Recognize the topic sentence in a paragraph.

Acknowledge the impact of mistakes and their role in historical and contemporary contexts.

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Definitions:

Amortization

The process of gradually paying off debt or spreading the cost of an intangible asset over its useful life.

Depletion Expense

The allocation of the cost of natural resources over the period they are consumed or sold.

Coal Mine

A site for the extraction of coal from the earth, typically involving underground or open-pit operations.

Accumulated Depreciation

The total depreciation for a fixed asset that has been charged to expense since the asset was acquired and made available for use.