A company regularly purchases materials from a manufacturer on credit. Payments for thesepurchases occur within the company’s operating cycle. They do not include interest and are established withan invoice outlining purchase details, credit terms, and shipping charges. Which current liability situation doesthis best describe?A. sales tax payableB. accounts payableC. unearned revenueD. income taxes payable
A company regularly purchases materials from a manufacturer on credit. Payments for thesepurchases occur within the company’s operating cycle. They do not include interest and are established withan invoice outlining purchase details, credit terms, and shipping charges. Which current liability situation doesthis best describe?A. sales tax payableB. accounts payableC. unearned revenueD. income taxes payable
Chapter12: Current Liabilities
Section: Chapter Questions
Problem 2MC: A company regularly purchases materials from a manufacturer on credit. Payments for these purchases...
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A company regularly purchases materials from a manufacturer on credit. Payments for these
purchases occur within the company’s operating cycle. They do not include interest and are established with
an invoice outlining purchase details, credit terms, and shipping charges. Which current liability situation does
this best describe?
A. sales tax payable
B. accounts payable
C. unearned revenue
D. income taxes payable
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