A company purchases office supplies and records the purchase under accounts payable on

the balance sheet.

Which term is accounts payable an example of?

- Equity

- Liabilities

- Costs

- Assets

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What effect does the cost of debt have on a company's cash flow?

- The before-tax cost of debt is deducted from the company's assets.

- The interest is reported as separate line item on the company's assets.

- The after-tax cost of debt is added to the company's assets.

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What is the selling price per unit minus the variable cost per unit?

- Deprecation

- Indirect costs

- Direct costs

- Contribution margin