The Debt Created by a Business When It Makes a Purchase

question 18

Multiple Choice

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

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

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Definitions:

Punishment

A consequence or penalty imposed for wrongful behavior, often used as a deterrent to prevent future occurrences of such behavior.

Administered Immediately

Carried out or applied without delay; executed promptly.

Negative Reinforcement

A behavioural strategy that involves the removal of an unpleasant stimulus to increase the likelihood of a desired response.

Contingent

Dependent on or conditioned by something else; occurring or existing only if certain circumstances are the case.