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If a Boat Manufacturer Orders 50 Units of Fiberglass Material

Question 31

Multiple Choice

If a boat manufacturer orders 50 units of fiberglass material and secures trade credit,promising to pay the supplier at a later date,the manufacturer will record the amount to be paid as a(n)


A) account receivable.
B) current asset.
C) long-term liability.
D) account payable.
E) equity account.

Correct Answer:

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