When accounts payable decrease,cash paid to suppliers must have been more than purchases.

Question

Quizplus · Accepted Answer

Accounts payable represent the amount that a company owes to its suppliers as a result of purchasing goods or services on credit. When accounts payable decrease, it means that the company has paid off some of the amount owed to suppliers. Therefore, cash paid to suppliers must have been more than the purchases made on credit.

When Accounts Payable Decrease,cash Paid to Suppliers Must Have Been