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

Quizplus · Accepted Answer

This is because with a credit policy, customers are allowed to defer their payments, resulting in an increase in accounts payable for the firm as it now has to pay its suppliers before receiving payment from customers.

It Would Be Common for a ﬁRm Which Has Adhered