Solved

During the Current Year,the Accounts Payable Balance Decreased

Question 138

Multiple Choice

During the current year,the accounts payable balance decreased.What does this indicate?


A) Payments on account were less than credit purchases during the period.
B) This decrease is added to net income in the operating activities section of a statement of cash flows prepared under the direct method.
C) This decrease is deducted from net income in the operating activities section of a statement of cash flows prepared under the direct method.
D) Payments on account exceeded credit purchases during the period.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents