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:

Net Income

The net income of a company, which is the amount left over from revenue after deducting all costs and taxes.

Service Revenues

Income earned from providing services as opposed to selling physical goods.

Dividends

Payments made by a corporation to its shareholder members, distributing earnings.

Common Shares

Shares in a company that signify ownership, allowing those who hold them to participate in voting and receive a part of the profits.