An increase in accounts payable is a source of cash.

Name: An increase in accounts payable is a source of cash.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

An increase in accounts payable means you owe more money to your suppliers/vendors. This means you have not yet paid for the goods or services received, and therefore have more cash available to use elsewhere. Therefore, an increase in accounts payable is considered a source of cash.

An Increase in Accounts Payable Is a Source of Cash