The liability created by a business when it purchases coffee beans and coffee cups on credit from suppliers is termed a(n)
A)account payable.
B)account receivable.
C)revenue.
D)expense.

Question

Quizplus · Accepted Answer

When a business purchases goods on credit, it creates a liability known as an account payable, which represents the amount the business owes to its suppliers.

The Liability Created by a Business When It Purchases Coffee