If the December 31, 2019, balance of accounts payable is lower than the January 1, 2019, balance, then the amount of cash payments will exceed the purchases on account for the year.

Question

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If the balance of accounts payable is lower at the end of the year than the beginning of the year, it means that more payments were made towards the accounts payable during the year than purchases made on account. Therefore, the amount of cash payments will exceed the purchases on account for the year.

If the December 31, 2019, Balance of Accounts Payable Is