Asked by
Valentina Gonzalez
on Dec 16, 2024Verified
If accounts payable have increased during a period,
A) revenues on an accrual basis are less than revenues on a cash basis.
B) expenses on an accrual basis are less than expenses on a cash basis.
C) expenses on an accrual basis are greater than expenses on a cash basis.
D) expenses on an accrual basis are the same as expenses on a cash basis.
Accrual Basis
An accounting method where revenue and expenses are recorded when they are earned or incurred, regardless of when the cash is actually received or paid.
Accounts Payable
Liabilities of a business that are due to creditors within a short period of time, usually for the purchase of goods and services.
Expenses
The cost of assets consumed or services used in the process of generating revenues.
- Identify the impact of changes in current assets and current liabilities on cash flows from operating activities.
Verified Answer
MW
Learning Objectives
- Identify the impact of changes in current assets and current liabilities on cash flows from operating activities.