What is a current liability that results when a business does not pay cash when the asset is purchased?

Question

BlackTom AI · Accepted Answer

Question restatement: What is a current liability that results when a business does not pay cash when the asset is purchased?
Option 1: unpaid wages. This refers to wages owed to employees that have not yet been paid; while it is a current liability, it is not related to the purchase of an asset with no cash payment. It arises from compensation obligations, not from purchasing assets on credit.
Option 2: interest paid. Interest paid is a cash outflow or an expense related to borrowed funds; it is not itself a liability arising from purchasing an asset on credit. It represents a cost already paid or due, but it doesn’t describe the liability created by asset acquisition without cash.
Option 3: accounts payable. This is the correct concept here. When a business buys an asset (or goods/services) and does not pay cash at the time of purchase, it creates a current liability called accounts payable, representing amounts owed to suppliers for short-term obligations.
Option 4: receipt. A receipt is evidence of a transaction or payment, not a liability. It does not represent a future obligation to pay and thus does not align with the description of a liability arising from buying an asset without cash.
In summary, the scenario described—purchasing an asset without paying cash at purchase—directly corresponds to creating an accounts payable, whereas the other options either describe different obligations, costs, or documentation that do not fit this specific situation.

What is a current liability that results when a business does not pay cash when the asset is purchased?单项选择题

类似问题

True or False? Accounts payable represents money that is owed to a business.

If accounts payable increase during an accounting period, then the cash paid for merchandise purchased is less than the merchandise purchases for the period.

Paid $12,000 cash for account previously owed to cleaning equipment suppliers.

Accounts payable represent money that a firm owes to ________.

What is the Invoice Count for Period 01 for Vendor Group SUP, as determined in Step 9?

In the A/P Post Batches form, which of the following types of batches can you not post?

What is the purpose of posting adjustment batches in the Accounts Payable module immediately after they have been reviewed for errors and printed? Select the best answer.

Which of the following is a method to process payments in Accounts Payable?

更多留学生实用工具

智能学习助手

风格化写作助手

论文查重助手

文献引用助手

课堂转译助手

课堂笔记助手

Quiz搜索助手

学校历年真题

智能刷题助手

智能匹配练习

希望你的学习变得更简单