When the Accounts Payable Department Posts a Liability

question 50

Multiple Choice

When the accounts payable department posts a liability:

• A) an asset is recognized.
• B) an expense is recognized.
• C) a liability is reduced.
• D) Either a or b depending on the transaction.

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Definitions:

False Assumption

An incorrect belief or premise that may lead to erroneous conclusions or actions.

Same Characteristics

Qualities, attributes, or features that are identical or very similar between entities.

Wealth Inequity

The unequal distribution of assets, wealth, and income among individuals or groups within a society, leading to economic disparity.

Prejudice

A preconceived opinion or judgment about someone or something that is not based on reason or actual experience.