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:

Economic Downturns

Periods of poor economic performance characterized by a decline in GDP, which can lead to increased unemployment and lower spending.

Employee Loyalty

The dedication of employees to their company, often reflected in their willingness to remain with the company for a long time.

Vacancy Model

A technique or model for predicting the number of job vacancies within an organization over a future period, aiding in workforce planning efforts.

Hierarchical Levels

The layers of authority within an organization, typically ranging from top management to entry-level employees, establishing a chain of command.