Question

What will happen if the payment terms of an account payable are not met?

OA. The buyer will have to return the goods.
OB. The account is debited from income.
OC. The vendor will assume responsibility.
D. The account will enter default.

Answer 1

D. The account will enter default.

If the payment terms of an account payable are not met, the account will enter default. This means that the buyer has failed to pay the vendor within the agreed-upon time frame and may incur penalties or interest charges. In some cases, the vendor may also take legal action or withhold future shipments until payment is made. The other options listed (A, B, and C) are not necessarily true in all cases and depend on the specific terms of the agreement between the buyer and vendor.