Which of the Following Is True of an Accounts Payable

question 60

Multiple Choice

Which of the following is true of an accounts payable subsidiary ledger?

• A)It does not indicate the amount owed to each vendor.
• B)It shows only a single total for the amount owed on account.
• C)It lists vendors in alphabetical order, along with amounts paid to the vendors and the remaining amounts owed to them.
• D)Its format is entirely different from an accounts receivable subsidiary ledger.

---

Definitions:

Operating Income

The profit earned from a firm's core business operations, excluding deductions of interest and tax.

Depreciation And Amortization

Accounting techniques that gradually reduce the value of a company's tangible and intangible assets over time.

Non-Callable

A term referring to a bond or other fixed-income security that cannot be redeemed by the issuer before its maturity date.

Long-Term Debt

Debt obligations that are due in more than one year, used by businesses and governments to finance their operations.