What information is needed to determine cash paid to suppliers?
I.The change in accounts receivable during the period
II.Cost of goods sold for the period
III.The change in inventories during the period
IV.The change in accounts payable during the period

Question

Quizplus · Accepted Answer

To determine cash paid to suppliers, you need the cost of goods sold (II), the change in inventories (III), and the change in accounts payable (IV). These factors help adjust the cost of goods sold for changes in inventory levels and accounts payable to calculate the actual cash paid to suppliers. The change in accounts receivable (I) is not relevant for calculating cash paid to suppliers, as it pertains to sales and collections from customers.

What Information Is Needed to Determine Cash Paid to Suppliers