An Increase in Accounts Payable Represents an Increase in Net

question 42

True/False

An increase in accounts payable represents an increase in net cash provided by operating activities just like borrowing money from a bank. An increase in accounts payable has an effect similar to taking out a new bank loan. However, these two items show up in different sections of the statement of cash flows.

---

Definitions:

Defective Product

A product that is unsafe, dangerous, or fails to meet normal standards of quality and performance, potentially causing harm to users.

Plaintiff's Negligence

A legal concept in personal injury cases where the plaintiff's own negligent actions contributed to their harm or loss.

Product Misuse

A defense against product liability that may be raised when the plaintiff used a product in a manner not intended by the manufacturer. If the misuse is reasonably foreseeable, the seller will not escape liability unless measures were taken to guard against the harm that could result from the misuse.

Defense

Legal strategies and arguments used by a defendant in litigation to counteract the claims made by the plaintiff.