If Accounts Payable Have Increased During a Period

question 132

Multiple Choice

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 the same as expenses on a cash basis
• D) expenses on an accrual basis are greater than expenses on a cash basis

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Definitions:

Incremental Models

Models or theories that suggest development or progress occurs in small, sequential steps.

Continuous Process

A process characterized by ongoing operations or functions without interruption.

Psychoanalytic Theory

A theory of personality development and its complex functioning in adulthood originated by Sigmund Freud.

Superego

In Freud’s personality theory, the last of three aspects of personality, which serves as an “internalized parent” that causes one to feel guilty if his behavior deviates from parental and societal restrictions.