All Else Equal, If a Firm Reduces Its Accounts Payable

question 8

Multiple Choice

All else equal, if a firm reduces its accounts payable by $20,000 during the year,

• A)cash flow from investing activities will increase by $20,000.
• B)cash flow from operating activities will increase by $20,000.
• C)cash flow from operating activities will decrease by $20,000.
• D)cash flow from investing activities will decrease by $20,000.

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The action of conducting business or trade between individuals or entities, often involving the exchange of goods, services, or funds.

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Parties involved in the exchange of goods and services, where one provides the product and the other provides compensation.