1.The liability created by a business when it purchases coffee beans and coffee cups on credit

from suppliers is termed a(n)

a. account payable.

b. account receivable.

c. revenue.

d. expense.

2.The right to receive money in the future is called a(n)

a. account payable.

b. account receivable.

c. liability.

d. revenue.

3.Which of the following is not a principal type of business activity?

a. Operating

b. Investing

c. Financing

d. Delivering

4.Borrowing money is an example of a(n)

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