If Accounts Payable Have Increased During a Period

question 213

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

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Definitions:

Market Price per Share

The current price at which a company's shares are being traded on the stock market.

Unusual Items

Financial events that are not typical for the normal business operations and are unlikely to recur, affecting a company's financial statements.

Accounting Principles

Fundamental guidelines or rules that underpin the process of accounting, including concepts like the matching principle, revenue recognition, and historical cost.

Short-term Creditors

Lenders or entities from whom a company has borrowed money or resources that are to be repaid within one year.