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

Question

Quizplus · Accepted Answer

An increase in the ending trade payables balance will increase the trade payables period as it means the company is taking longer to pay off its suppliers.

Which One of the Following Will Increase the Trade Payables