A vendor invoice for $14,600 is received today and due in 30 days. What account is created before payment?
Correct Answer
C) Accounts payable.
A vendor bill owed by the contractor creates accounts payable until it is paid.
Why This Is the Correct Answer
A vendor bill owed by the contractor creates accounts payable until it is paid.
Why the Other Options Are Wrong
Option A: Accounts receivable.
Accounts receivable. puts the item in the wrong financial bucket, timing, base, or comparison for the financial classification.
Option B: Owner's draw.
Owner's draw. puts the item in the wrong financial bucket, timing, base, or comparison for the financial classification.
Option D: Cash receipt.
Cash receipt. puts the item in the wrong financial bucket, timing, base, or comparison for the financial classification.
Memory Technique
Vendor and bill point to different ledger roads for Coding Supplier.
Reference Hint
Study anchor (closed-book): memorize supplier payable account 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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