Purchases of inventory minus the increase in accounts payable equals
A)cash collected from customers.
B)cash collected for sales on credit.
C)cash paid to vendors.
D)cash paid for inventory.
E)none of the above

Question

Quizplus · Accepted Answer

Cash paid for inventory is calculated as purchases of inventory minus the increase in accounts payable, reflecting the actual cash outflow to acquire inventory.

Purchases of Inventory Minus the Increase in Accounts Payable Equals