A subcontract payable of $46,800 is entered but not yet paid. What amount increases accounts payable?
Correct Answer
B) $46,800
Recording the unpaid subcontract invoice increases accounts payable by the invoice amount.
Why This Is the Correct Answer
Recording the unpaid subcontract invoice increases accounts payable by the invoice amount.
Why the Other Options Are Wrong
Option A: $0
$0 is below the supported result for accounts payable entry; it likely uses the wrong base, period, or account bucket.
Option C: $93,600
$93,600 is above the supported result for accounts payable entry; it likely adds an unsupported amount or compares the wrong financial base.
Option D: $4,680
$4,680 is below the supported result for accounts payable entry; it likely uses the wrong base, period, or account bucket.
Memory Technique
Office Records money test: bucket before math for accounts payable entry.
Reference Hint
Open-book path: tab Builder's Guide to Accounting, 2001 to Section Two, Check Writing and Recording, Paying Accounts Payable; use the job ledger figures in the stem and recompute the same accounting measure.
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