Tammy is talented at craft but lacks the cash flow management skills required to run a business.She opens a store,Tammy's Craft Corner,with the help of her son David-a business major-who would manage the budgets and expenses of the business.Tammy buys her craft materials on credit from her supplier but clears all her debts at the end of every month.The amount that Tammy owes her supplier is referred to as _____.

Question

Quizplus · Accepted Answer

Payables refer to the amount of money that a business owes to its suppliers or creditors. Tammy buys her craft materials on credit, which means she owes her supplier money. Therefore, the correct term for the amount that Tammy owes her supplier is payables. Charge backs refer to when a customer disputes a payment or transaction, deposits refer to money transferred into a bank account, and receivables refer to money owed to a business by its customers.

Tammy Is Talented at Craft but Lacks the Cash Flow