If accounts payable increased,cash paid for inventory would be equal to

Name: If accounts payable increased,cash paid for inventory would be equal to
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Accounts payable represents the amount a company owes to its suppliers for goods or services received but not yet paid for. An increase in accounts payable means the company has purchased more inventory on credit, which has not yet been paid for. Therefore, the cash paid for inventory would be equal to purchases minus the accounts payable increase.

If Accounts Payable Increased,cash Paid for Inventory Would Be Equal