One of the common disclosures in the _______ is reclassification of material debit balances in accounts payable as accounts receivable.
A)purchase transactions
B)net sale transactions
C)purchase adjustments
D)purchasing process

Question

Quizplus · Accepted Answer

Reclassification of material debit balances in accounts payable as accounts receivable is a common disclosure in the purchasing process. This adjustment is made to accurately reflect the nature of the transaction in the financial statements, where a debit balance in accounts payable (typically a credit balance account) indicates an amount owed to the company, thus more appropriately classified as an account receivable.

One of the Common Disclosures in the _______ Is Reclassification