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

Question

Quizplus · Accepted Answer

An increase in the ending accounts payable balance will increase the accounts payable period. This is because the accounts payable period is calculated as the average accounts payable balance divided by the daily cost of goods sold. An increase in the ending accounts payable balance will increase the average accounts payable balance, which in turn will increase the accounts payable period.

Which One of the Following Will Increase the Accounts Payable