Which of the following liabilities is often referred to as "free debt" because it rarely carries any interest if paid within a specified period of time.
A)Line of credit.
B)Working capital loan.
C)Accounts payable.
D)None of the above-all current liabilities carry an interest rate.

Question

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Accounts payable is often referred to as "free debt" if paid within a specified period of time, as suppliers may offer discounts or waive interest charges for prompt payment.

Which of the Following Liabilities Is Often Referred to as "Free