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:
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