If Accounts Payable Have Increased During a Period

question 72

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:

Spot Exchange Rate

The current market price at which one currency can be exchanged for another currency.

Spot Exchange Rate

The spot exchange rate is the current exchange rate at which a currency can be bought or sold for immediate delivery.

Initial Recognition

The process of recording an asset or liability for the first time in the financial statements, according to its fair value.

Monetary Item

Financial records and objects that can be valued and expressed in money terms, such as cash or receivables.