During the Current Year, the Accounts Payable Balance Decreased

question 113

Multiple Choice

During the current year, the accounts payable balance decreased.

• A)This decrease indicates that payments on account were less during the period than credit purchases.
• B)This decrease is added to net income in the operating activities section of a statement of cash flows prepared under the direct method.
• C)This decrease is deducted from net income in the operating activities section of a statement of cash flows prepared under the direct method.
• D)This decrease indicates that payments on account exceeded credit purchases during the period.

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Definitions:

Economic Well-being

The state in which individuals or societies can satisfy their needs and desires, often measured by income, employment, and access to resources.

Taxes Affect

Describes how taxes influence economic decisions and behaviours of individuals and businesses, including consumption, investment, and savings.

Labor Supply

The total hours that workers are willing and able to work at a given wage rate, within an economy.

Inelastic

A situation in which the demand or supply for a good or service is relatively unresponsive to changes in price.