When accounts payable decrease,cash paid to suppliers must have been more than purchases.

Name: When accounts payable decrease,cash paid to suppliers must have been more than purchases.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Accounts payable represents the amount owed to suppliers for purchases made on credit. If accounts payable decreases, it means the company paid back some of the amount owed to suppliers, which indicates that cash paid to suppliers must have been more than the purchases made on credit.

When Accounts Payable Decrease,cash Paid to Suppliers Must Have Been