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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.

Answer Options
A
Accounts receivable.
B
Owner's draw.
C
Accounts payable.
D
Cash receipt.

Why This Is the Correct Answer

A vendor bill owed by the contractor creates accounts payable until it is paid.

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