The major balance sheet account in the acquisition and payment cycle is:
A) purchases.
B) ordinary shares.
C) merchandise inventory.
D) accounts payable.

Question

Quizplus · Accepted Answer

The major balance sheet account in the acquisition and payment cycle is accounts payable, as this represents the amounts owed by the company for purchases made on credit. While purchases, ordinary shares, and merchandise inventory are also important accounts in this cycle, they do not necessarily represent the direct impact on the balance sheet.

The Major Balance Sheet Account in the Acquisition and Payment