An Increase in Accounts Payable Is a Source of Cash

question 5

True/False

An increase in accounts payable is a source of cash.

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Definitions:

Federal Law

Laws passed by the national government that are supreme over state laws and apply throughout the entire country.

Contract Modification

Any change or alteration to the terms of a contract agreed upon by all parties involved.

Consideration

A legal concept referring to something of value given by both parties to a contract that induces them to enter into the agreement to exchange mutual performances.

Mirror-Image Rule

The principle that holds that the terms of the acceptance must mirror the terms of the offer; if the terms of the acceptance do not mirror the terms of the offer, no contract is formed, and the attempted acceptance is a counteroffer.