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:

Interest Rates

The amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets. Interest rates are typically noted on an annual basis, known as the annual percentage rate (APR).

After-Tax Annual Interest Savings

The amount of money saved annually on interest payments after accounting for the effects of taxes, often referenced in discussions of debt refinancing or consolidation.

Refunding

The process of replacing an existing debt with a new debt, often to take advantage of more favorable borrowing terms.

Marginal Tax Rate

The percentage of tax applied to your income for each tax bracket in which you qualify.