The rights and obligations assertion with respect to accounts payable relates to whether the _______.
A)accounts receivable reflect the recorded asset of the entity
B)accounts receivable reflect the recorded liability of the entity
C)accounts payable reflect the recorded liability of the entity
D)accounts payable reflect the recorded asset of the entity

Question

Quizplus · Accepted Answer

The rights and obligations assertion with respect to accounts payable relates to whether the accounts payable reflect the recorded liability of the entity, meaning whether the entity owes money to outside vendors or suppliers for goods or services received. Options A and D both refer to accounts receivable, which is not relevant to this assertion, and option B refers to the opposite side of the transaction, the entity's own liability, rather than its obligations to outsiders.

The Rights and Obligations Assertion with Respect to Accounts Payable