Which one of the following will increase the accounts payable period, all else constant?
A) An increase in the cost of goods sold account value.
B) An increase in the ending accounts payable balance.
C) An increase in the cash cycle.
D) A decrease in the operating cycle.
E) A decrease in the average accounts payable balance.

Question

Quizplus · Accepted Answer

The accounts payable period is the time it takes for a company to pay off its suppliers. An increase in the ending accounts payable balance means the company is taking longer to pay its bills, thus increasing the accounts payable period.

Which One of the Following Will Increase the Accounts Payable