Which of the Following Statements Regarding Accounts Payable Is Incorrect

question 185

Multiple Choice

Which of the following statements regarding Accounts Payable is incorrect?

• A) The Accounts Payable account is decreased with a credit.
• B) Accounts payable occur because the business receives the goods or services before payment has been made.
• C) Because accounts payable are typically due in 30 days, they are current liabilities.
• D) Accounts payable represent debts owed to creditors.

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Definitions:

Collective Agreement

A written contract between employers and a group of employees, typically represented by a union, that details terms and conditions of employment.

Final Settlement

The conclusive resolution and payment of all dues or claims at the end of a contract, employment, or legal dispute.

All Jurisdictions

Refers to every area or sector under legal or governmental authority.

Managing Change

The process of guiding an organization through transitions or adjustments to its operations or culture.