The Buddy Burger Corporation owes $1.5 million to the Texas Wholesale Meat Company from whom Buddy Burger buys its burger meat. Which account would Buddy Burger use to report the amount owed?

Question

Quizplus · Accepted Answer

Buddy Burger owes money to Texas Wholesale Meat Company, so this is a liability. The appropriate account for reporting obligations or debts owed to others is Accounts Payable. Therefore, the Buddy Burger Corporation would use Accounts Payable to report the amount owed.

The Buddy Burger Corporation Owes $1