If Accounts Payable Have Increased During a Period

question 85

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:

Consideration

The value (such as money, goods, or services) that is exchanged between parties in a contract.

Contractual Obligation

A duty or commitment that a party is bound to fulfill as per the terms of a contract.

Resurface Driveway

The process of repairing and overlaying the existing pavement of a driveway with new material to restore its surface.

Essential Elements

Fundamental components or factors that are necessary to form or define a particular entity or concept.