An increase in the accounts payable account results in a outflow of cash.

Question

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An increase in the accounts payable account represents an increase in the amount owed to vendors or suppliers for goods or services. This represents a liability for the company and does not result in an outflow of cash. A decrease in accounts payable, on the other hand, represents a decrease in the amount owed and therefore results in an outflow of cash as payments are made to vendors.

An Increase in the Accounts Payable Account Results in a Outflow