An Accounts Payable Ledger Is

question 80

Multiple Choice

An accounts payable ledger is:

• A)A subsidiary ledger that contains an account for each of the company's suppliers.
• B)A list of the balances of all the accounts in the accounts receivable ledger that is added to show the total amount of accounts receivable outstanding.
• C)A book of original entry that is designed and used for recording only a specific type of transaction.
• D)The ledger that contains the financial statement accounts of a business.
• E)A subsidiary ledger that contains a separate account for each party that grants both short-term and long-term credit on account to the company.

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Definitions:

Capital Contributions

Investments of cash or other assets made by owners or partners into a business, increasing the equity of the company.

Net Income

The total earnings of a company after subtracting all expenses, taxes, and costs from its total revenue, representing the company's profit.

DRD

DRD refers to the Dividends Received Deduction, a provision that allows corporations receiving dividends from related entities a deduction to reduce taxable income, aiming to mitigate triple taxation.

Taxable Income

The portion of income that is subject to income tax after all deductions and exemptions are applied.