Assuming Accounts Payable Is Used for Inventory Purchases Only, the Amount

question 18

Multiple Choice

Assuming accounts payable is used for inventory purchases only, the amount of cash paid for inventory purchases during 2013 was:

• A)$16,000.
• B)$88,000.
• C)$96,000.
• D)$80,000.

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Definitions:

Interest Rate

The percentage of a sum of money charged for its use, often expressed on an annual basis.

Single Payment

A one-time transfer of money to settle a liability or make a purchase.

Payment Obligations

Financial liabilities or commitments that an entity is required to pay to another party.

Simple Interest Rate

The percentage of the principal amount that is paid as interest for a specific period.