Which One of the Following Will Increase the Accounts Payable

question 158

Multiple Choice

Which one of the following will increase the accounts payable period, all else constant?

• A) An increase in the cost of goods sold account value.
• B) An increase in the ending accounts payable balance.
• C) An increase in the cash cycle.
• D) A decrease in the operating cycle.
• E) A decrease in the average accounts payable balance.

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Definitions:

Marginal Cost

The increase in cost resulting from the production of one additional unit of a product or service.

Fixed Costs

Costs that do not change with the level of output or production, such as rent, salaries, and insurance premiums.

Total Cost

The complete sum of all expenses incurred in the production of goods or services, including fixed and variable costs.

Break-even Quantity

The volume of sales at which total revenues equal total costs, resulting in neither profit nor loss.