Asked by Shelby Buckler on Jul 11, 2024
Verified
A decrease in accounts payable is a source of cash.
Accounts Payable
Liabilities of a business representing money owed to creditors for goods and services purchased on credit.
Source of Cash
Any activity or operation that brings money into a business, contributing to its cash flow.
- Explore the connection between various financial manipulations and the cash flow status of an organization.
Verified Answer
WN
Wan Nisa Batrisyia Wan ZamzuriJul 12, 2024
Final Answer :
False
Explanation :
A decrease in accounts payable indicates that a company is paying off its suppliers or creditors, which results in a cash outflow, thus reducing the company's cash balance.
Learning Objectives
- Explore the connection between various financial manipulations and the cash flow status of an organization.