The size of the accounts payable is affected by the level of the firm's cost of goods sold and the average payment period.

Question

Quizplus · Accepted Answer

The size of accounts payable is directly related to the company's cost of goods sold, as this represents the amount of money the company owes to its suppliers. Additionally, the average payment period (the time it takes for a company to pay its suppliers) can also affect the size of accounts payable, as a longer payment period can result in a larger amount of outstanding payments.

The Size of the Accounts Payable Is Affected by the Level