Multiple choice

The account payable (A/P) component in an accounting package is not designed to

  1. verify the accuracy of incoming bills

  2. keep track of amounts owned by customers

  3. make sure that discounts are not lost

  4. issue payment cheques towards the end of the discount period
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Accounts Payable (A/P) tracks money the company owes to suppliers. Tracking money owed by customers is the function of Accounts Receivable (A/R), not A/P.

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