An Increase in Accounts Payable Would Be Considered

question 26

Multiple Choice

An increase in accounts payable would be considered:

• A)a source of cash.
• B)a use of cash.
• C)an adjusting entry.
• D)a noncash charge to income.

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Definitions:

Total Revenue

The total income a firm receives from selling its products; calculated as the quantity sold multiplied by the price per unit.

Total Cost

The sum of fixed and variable costs incurred by a business in the production of goods or services.

Profit

The financial gain achieved when the revenue gained from business activities exceeds the expenses, costs, and taxes needed to sustain the activity.

Economic Profit

The disparity between total income and total outlays, considering both manifest and concealed costs.