The liability created by a business when it purchases coffee beans and coffee cups on credit from suppliers is called a(n)
A)account payable.
B)account receivable.
C)revenue.
D)expense.

Question

Quizplus · Accepted Answer

Account payable is the correct term for a liability created when a business purchases goods or services on credit from suppliers. It represents the amount the business owes to its suppliers for those purchases.

The Liability Created by a Business When It Purchases Coffee