It would be common for a firm which has adhered to a cash sales policy to experience an increase in accounts payable immediately following the time the firm converts to a credit policy.

Question

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When a firm converts from a cash sales policy to a credit policy, it begins to offer credit to its customers. This means that the firm will now have accounts payable, as customers will be allowed to purchase goods or services on credit and pay for them at a later date.

It Would Be Common for a Firm Which Has Adhered