Which of the Following Transactions Will Decrease the Accounts Payable

question 121

Multiple Choice

Which of the following transactions will decrease the accounts payable turnover ratio?

• A)Using cash to pay an accounts payable balance.
• B)Selling inventory on account.
• C)Selling inventory for cash.
• D)A customer returning inventory sold on account.

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Definitions:

Quantity Demanded

The aggregate quantity of a product or service that buyers are ready and capable of buying at a specified price point over a certain timeframe.

Price

The amount of money or the value that is considered to be the equivalent of a good or service.

Elasticity of Demand

A measure of how sensitive the quantity demanded of a good is to a change in its price, indicating how consumers' purchasing decisions are affected by price changes.

Natural Gas

A fossil fuel used primarily for heating, electricity generation, and as a fuel for vehicles, consisting mainly of methane and found underground.