A contractor owes vendors $7,200 current, $4,300 at 31-60 days, and $2,500 over 60 days. What total accounts payable are outstanding?
Correct Answer
B) $14,000.
Accounts payable outstanding is the sum of the vendor aging buckets: $7,200 + $4,300 + $2,500 = $14,000.
Why This Is the Correct Answer
Accounts payable outstanding is the sum of the vendor aging buckets: $7,200 + $4,300 + $2,500 = $14,000.
Why the Other Options Are Wrong
Option A: $11,500.
$11,500. is below the supported result for accounts payable; it likely uses the wrong base, period, or account bucket.
Option C: $9,700.
$9,700. is below the supported result for accounts payable; it likely uses the wrong base, period, or account bucket.
Option D: $4,300.
$4,300. is below the supported result for accounts payable; it likely uses the wrong base, period, or account bucket.
Memory Technique
Outstanding and sum live in different drawers; Checking Vendor tells which opens.
Reference Hint
Study anchor (closed-book): memorize Accounts payable from CSLB Law and Business Study Guide; CSLB 2026 Law Book / CSLB Law and Business Study Guide Business Finances; know the rule or calculation trigger without relying on exam-room lookup.
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