Great An Increase In Accounts Payable Is A Source Of Cash
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If you remember that liabilities increase with credits you support this credit to notes payable.
An increase in accounts payable is a source of cash. A decrease in inventory An increase in fixed assets A decrease in long-term debt The payment of a cash dividend An increase in accounts receivable. An increase in accounts payable is a positive adjustment because not paying those bills which were included in the expenses on the income statement is good for a companys cash balance. Therefore accountants see this as an increase to cash.
A purchase of inventory D. Decrease in accounts payable. Decrease in accounts payable III.
The reason for this comes from the accounting nature of accounts payable. So it means that there is net amount credit sales for which we have not received any cash amount. A decrease in assets or an increase in liabilities and equity represents.
Accounting questions and answers. Which of the following is a source of cash flows. The value of inventory purchased is debited to the inventory account in the books of the company.
Total assets for the current year. Increase in accounts receivable B. On a common-size balance sheet all accounts for the current year are expressed as a percentage of.
Decrease in notes payable C. Increase in Account Payable 35000. A credit entry is processed to the accounts payable account which increases this balance.
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