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:

Exact Period

A specific timeframe during which certain actions are to take place or conditions must be met.

Offer Open

A proposal made in business or negotiations that remains valid for acceptance until a specified date or until withdrawn by the proposer.

Sailboat Sale

The transaction process involved in transferring ownership of a sailboat from one party to another.

Counteroffer

A response to an offer in which the original terms are rejected and new terms are proposed, forming part of the negotiation process.