Asked by Evlyn Torgerson on Jun 18, 2024
Verified
If accounts payable have increased during a period,
A) revenues on an accrual basis are less than revenues on a cash basis
B) expenses on an accrual basis are less than expenses on a cash basis
C) expenses on an accrual basis are the same as expenses on a cash basis
D) expenses on an accrual basis are greater than expenses on a cash basis
Accounts Payable
The amount owed by a business to its suppliers or vendors for goods and services purchased on credit.
Accrual Basis
An accounting method that records income and expenses when they are earned or incurred, regardless of when cash is exchanged.
Expenses
Costs incurred by a business or individual in the course of generating revenue, including operational costs and overheads.
- Estimate the net cash proceeds or payments in operational activities via the indirect technique.
- Gain insight into the effects of changes in current assets and liabilities on the cash flows derived from operating activities.
Verified Answer
Learning Objectives
- Estimate the net cash proceeds or payments in operational activities via the indirect technique.
- Gain insight into the effects of changes in current assets and liabilities on the cash flows derived from operating activities.
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