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The Accounts Payable Balance Has Decreased During the Year

question 100

Essay

The Accounts Payable balance has decreased during the year. How would this affect the cash flow statement operations section under the indirect method?


Definitions:

Express Ratification

The explicit approval or confirmation of a previously unauthorized act.

Age of Majority

The legally defined age at which an individual is recognized as an adult and is fully accountable for his or her actions.

Intends

Plans or aims to carry out a specific action in the future.

Disaffirm

The act of rejecting or voiding a contract or agreement, especially one entered into by a minor or under conditions that make it voidable.

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