________ represents a short-term liability created by purchasing "on account."
A) Accounts Receivable
B) Notes Payable
C) Accounts Payable
D) Expenses

Question

Quizplus · Accepted Answer

Accounts Payable represents the short-term liability that is created by purchasing on account, meaning that the company has bought goods or services but has not yet paid for them. Accounts Receivable represents money owed to the company by its customers, Notes Payable represents a formal written promise to pay a specific amount of money at a future date, and Expenses represent the costs incurred by a company during its operations.

________ Represents a Short-Term Liability Created by Purchasing "On Account