The largest portion of accounts payable for most merchandising companies is related to the purchase of inventory on account.

Question

Quizplus · Accepted Answer

Accounts payable is the amount owed to suppliers for purchased goods or services on credit. For a merchandising company, the majority of its expenses and liabilities are related to purchasing inventory on credit, which leads to a large portion of accounts payable. Therefore, the statement is true.

The Largest Portion of Accounts Payable for Most Merchandising Companies