What Information Is Needed to Determine Cash Paid to Suppliers

question 75

Multiple Choice

What information is needed to determine cash paid to suppliers?
I.The change in accounts receivable during the period
II.Cost of goods sold for the period
III.The change in inventories during the period
IV.The change in accounts payable during the period

• A)I, II, III, and IV
• B)I, II, and III
• C)II, III, and IV
• D)II and III
• E)III and IV

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Definitions:

Credit Balance

The amount that a company or individual owes to creditors; in accounting, it indicates a balance on the right side of a ledger for liability, revenue, or equity accounts.

Closing Entries

Journal entries made at the end of an accounting period to transfer balances from temporary to permanent accounts.

Statement of Income

A financial report summarizing the revenues, expenses, and profits/losses of a company over a specified period, also known as an income statement.